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Full text of "O'Hare Field, Chicago International Airport : plan "C" development : initial stage, stage II, stage III"

O'HARE FIELD 
CHICAGO INTERNATIONAL AIRPORT 

PLAN »C" DEVELOPMENT / 
J 
By Ralph E. Burke October - 1954. 



uncataloged 
Please RETURN TO 
Transportation Library 
Catalog Unit 



D'HAR 
FIE 




NATIONAL AIRPORT 




AN 

INI 



C" DEVE 



STAGE A 
STAGE'S. • 
STAGEK • 

\. / 




NORTHWESTERN UNIVERSITY 
LIBRARY 



AUG I 3 200! 



C l i r/1!irOi i d ago 



MARTIN H. KENNELLY, MAYOR 



O'HAEE FIELD 

CHICAGO INTERNATIONAL AIRPORT 



PLAN "C" DEVELOPMENT 

- INITIAL STAGE 

- STAGE II 

- STAGE III 



PREPARED FOR 
CITY OF CHICAGO 



MARTIN H. KENNELLY 
MAYOR 



P. J. CULLERTON 
Chairman 
COMMITTEE ON FINANCE 



JOHN E. EGAN 

Chairman 

COMMITTEE ON AVIATION 



BY 



RALPH H. BURKE 
AIRPORT CONSULTANT 



OCTOBER - 195^ 



RALPH H. BURKE 

Consulting Engineer 

Twenty North Wacker Drive 

Chicago 6, Illinois 



DEarborn 2-6071 



October, 195 1 *- 



To the Honorable Martin H. Kennelly 
Mayor, City of Chicago 



Deal* Mayor Kennelly: 

There is presented herewith a progress report on 
O'Hare Field Chicago International Airport. 

The end of this year 195^ signalizes an important 
stage in the development of O'Hare Field. The airport will 
then be ready for scheduled operations by the Airlines. 

The report appraises the present situation, covers 
the anticipated growth in the use of the field and outlines 
the expansion program which must be undertaken to keep pace 
with the aviation needs of the City of Chicago. 

Respectfully submitted, 



1 

Airport Consultant 



CHICAGO PLAN COMMISSION 



INTRODUCTION 

An important stage in the development of O'Hare Field as the Chicago 
International Airport will be reached at the end of this year, 195^. At that 
time, with the completion of construction contracts now under way, O'Hare Field 
will be equipped for scheduled operations by the Airlines. 

It has long been recognized that the enormous air traffic now existing 
in Chicago and the phenomenal growth of that air traffic imposes a burden on the 
facilities at Midway Airport far in excess of their normal and safe capacity. 
It is now possible for the first time to alleviate these conditions by making the 
facilities at O'Hare Field available for a substantial portion of scheduled air 
traffic. 

With the completion of Contracts 10 and 11 scheduled for the end of 
this year, O'Hare Field will have the following major facilities as shown on 
Figures 2A and 8: 

A terminal building comprising a two level structure with a trans- 
portation level on the ground floor and a passenger level on the second floor 
containing a passenger concourse, ticket counters, baggage claim facilities, 
restaurant and concession areas with an observation deck on the roof. 

Ample apron area surrounding the building to accommodate 16 airplane 
loading positions adjacent to the terminal building. 

Gasoline storage tanks providing a capacity of 800,000 gallons with a 
truck fill stand system to serve aircraft. 

Taxiways connecting the apron area with the existing runways, the 
major one of which is in a NW-SE direction and 7,350 feet long. 

An auto parking area for approximately 1,400 cars located adjacent to 
the terminal building. 

A new and modern control tower fully equipped with electronic controls 
for ILS, GCA and surveillance radar. 



In 195^, the scheduled air passenger movements at Midway Airport will 
total approximately 7,600,000. It will require over 295,000 scheduled plane 
movements and will involve the use and handling of over 1^0,000,000 gallons of 
fuel. 

It is anticipated and planned that initially about 30 per cent of this 
traffic will he transferred to 0'Hare Field. This will leave a balance at Midway 
Airport of approximately 5,500,000 passenger movements annually, a traffic load 
which can conveniently and safely he handled and which should never be exceeded 
at Midway Airport. 

The balance, initially somewhat in excess of 2,500,000 passenger move- 
ments can be accommodated at 0'Hare Field. This volume of traffic will immedi- 
ately rate 0'Eare Field as one of the 10 busiest airports in the nation. To this 
total must be added the rapidly expanding air traffic in the years to come. 

This therefore is our problem today. 

The facilities at 0'Hare Field will allow the initial transfer of 30 
per cent of present Chicago air traffic. Their capacity will, however, soon be 
overtaxed unless a construction program of expansion and improvements is planned 
and ways and means found for its accomplishment. Figures 8 through 11 illustrate 
these facilities. 
TRAFFIC 

Air traffic studies, the results of which are shown on Figure 12 
indicate that total air passenger movements at Chicago which now stand at 
7,600,000 will ultimately reach a total of 15,950,000 as a minimum and will 
probably total 22,^00,000 movements. These movements have followed for years 
a fairly well defined curve, so that a projection of this curve provides a 
fairly accurate indication not only of its ultimate total, but also of its 
annual growth. 



-3- 

Similarly projection may safely be made of required plane movements 
and resultant fuel requirements of the future. See Figures 16 and 18. 

From these data, fairly accurate determinations may be made of peak 
hour requirements as to number of runways needed for simultaneous use, number of 
loading positions needed, extent of fueling facilities to service planes and 
capacities and all other airport facilities to keep pace with the expanding 
demands of traffic. Figures 13 through 20 depict these conditions. 

In the study of traffic and capacities at O'Hare Field, cognizance 
must be taken of the extent to which operations by the Air Forces may interfere 
with the full development of the field for commercial use. Two interceptor 
squadrons of jet aircraft now operate from the field and some training operations 
are in force. 

The deed from the Federal Government conveying the portion of the 
field constructed during World War II to the City for commercial development 
reserved to the Federal Government the right to use the facilities in common 
with others. This right, however, is further limited by the provision that the 
Administrator of Civil Aeronautics may restrict Government use to 25 per cent 
of the capacity of the field to avoid interference with commercial operations. 

While present plans contemplate the continuance of operations of the 
jet Interceptor Squadrons at O'Hare Field, the time may come when the recom- 
mendation of the President's Airport Commission calling for a segregation of 
military and civilian flying may prevail and a new military field will be pro- 
vided for Chicago for all defense and reserve training operations. 

In the meantime the joint use of the facility at O'Hare Field is not 
objectionable except as to the volume of military use which might become 
restrictive with the growth of commercial operations at the field. The use of 
jet aircraft by the Air Forces while involving characteristics differing some- 
what from the present day conventional aircraft, should not offer any 



insurmountable objection as the entire transport industry is looking forward 
to the use of jet aircraft for general transport use. It is further a fact that 
jet and conventional aircraft are now in joint use successfully at several air- 
ports throughout the country. 
STAGE DEVELOPMENT 
Initial Stage 

The facilities at O'Hare Field as they will exist at the end of this 
year 195*+ > have been designated as Initial Stage of Plan C, and are essentially 
as described earlier in this report and shown on Figure 2A. The capacity of this 
Stage is predicated on the use of the existing runways. While there are four 
runways on the field, they intersect each other and for that reason only one can 
be used at one time. This limits the capacity of the field during obscure 
weather to 15 plane movements per hour under IFR (instrument flight rules) or 
during clear weather to *+0 plane movements per hour during VFR (visual flight 
rules.) All other facilities at the Field under Initial Stage Plan C such as 
loading positions, fuel systems and terminal building and other features are 
consistent with the limiting factor of runway capacity. 

These capacities compare with the initial volume requirements of 
35 plane movements per hour in 1955 > while in 1956 the volume will reach k6 
plane movements per hour. Thus it is apparent that as soon as scheduled opera- 
tions are started at O'Hare Field the capacity of the field during IFR condi- 
tions will be immediately exceeded and that even the capacity under VFR condi- 
tions will be reached or passed within the second year of operation. 
Stage II 

As will be seen from a study of the traffic growth figures, and as 
mentioned above, in a relatively short time, additional runway capacity is a 
necessity. 



-5- 

The next logical and inescapable step therefore is the addition of a 
new runway. This is planned as a NW-SE runway 8,000 feet long and parrellel with 
the existing NW-SE runway, thus providing for the field two parallel runways, 
and more than doubling the capacity of the field. 

To be consistent with the new capacity of the field and to a -commodate 
the traffic demand at that time, the loading positions must be increased from 
16 to 29 positions, the fueling sj'-stem must be enlarged and the terminal building 
areas must be correspondingly expanded. 

Figure 2B shows the salient features of Stage II. 
Stage III 

A further study of the traffic growth curves indicates the facilities 
provided under Stage II will be adequate for only a few years and that not later 
than in 195$ additional facilities will be needed. 

Stage III therefore includes the addition of a new E-W runway 8,100 
feet in length. This added runway under VFR conditions will add 50 per cent to 
the capacity of the field, and under IFR conditions will add greatly to the 
flexibility of control of flights in and out of the field. It is anticipated 
that with the further development of electronic navigational aids the additional 
runway will become fully effective under all flight conditions. 

Accompanying this expansion in runway capacity and to keep pace with 
the demands of expanding air traffic, the loading positions must be increased 
from 29 to 37 gates, with a corresponding expansion of the terminal building 
facilities. 

Figures 2, 3> k> 6 and 7 show the salient features of Stage III. 
FINANCING 

Figure 19 shows the amounts which will have been expended for the 
initial stage of development ready for establishing scheduled air traffic by the 
Air Lines at 0'Hare Field. It also contains estimates of the additional and 
total costs of Stage II and Stage III. 



The initial stage will total $19,^75,000; Stage II will involve an 
addition of $15,000,000; and Stage III is estimated to cost an additional 
$15,400,000. 

These expenditures are inevitable and a plan must be formulated to 
meet them. 

The present costs have been met from City, State and Federal funds 
substantially as follows: 

City $8,500,000 

State 4,1^0,000 

Federal 6,835,000 

It is obvious that 0'Hare Field is and will always be an important cog 
in the Federal System of Airways and that from the standpoint of interstate and 
international commercial traffic alone without any reference to its military 
significance in times of National emergency, 0'Hare Field should command a high 
priority in the expenditures of the Federal Government for aid to commercial 
airports. Under present regulations Federal funds may be expended for almost 
any airport improvements except buildings, fueling facilities and parking 
lot improvements. Many of the improvements constituting Stage II, however, are 
eligible for Federal funds. 

Similarly, 'Hare Field is vital to the entire State of Illinois as 
its outlet from every city and community throughout the State in the national 
and international airport system. Continuing State appropriations in developing 
and improving 0'Hare Field are therefore fully warranted from the standpoint 
of the public interest. State funds under present law may be expended on all 
airport improvements except buildings and the purchase of land, so that most of 
the improvements comprising Stage II are eligible for State grants. 



-7- 

The land necessary for Stage II and Stage III development of O'Hare 
Field has been already acquired by the City of Chicago (See Figure 11). The 
extension of the buildings and the expansion of the fueling system and other 
similar items must be financed by the City of Chicago. While present bond funds 
are practically exhausted such additional funds as are needed must be provided 
either from additional general obligation bonds or from revenue bonds dependent 
on the income to be derived from operations of the airport. Where the funds 
so derived are to be used for income producing improvements, such as terminal 
building for which fixed rentals are charged or for other improvements for which 
a definite income is assured, it seem reasonable that revenue bond financing may 
be a successful and acceptable method. 

Stage II therefore involving an additional expenditure of $15,000,000 
might be financed as follows covering the requirements of the next two years: 

Federal Grants $ 3,500,000 

State Appropriations 2,500,000 
City Funds 9 , 000,000 

Total $15,000,000 

Stage III will involve an additional expenditure of $15,^00,000 
covering the requirements of the following three years. The costs might be 
financed a3 follows: 

Federal Grants $ 3,600,000 

State Appropriations 3,100,000 

City Funds 8,700,000 

Total $15,1+00,000 



CONCLUSIONS AND RECOMMENDATIONS 

It is imperative that scheduled operation by the Airlines be instituted 
at O'Hare Field at the earliest possible date. This is essential not only for 
the survival of the Air Lines in their constantly increasing traffic require- 
ments, but also for the City of Chicago to continue to be the hub of the 
nation's air traffic. 

Negotiations now in progress between the City and the Airlines should 
therefore be speedily consummated under such terms as are equitable on the one 
hand to the City in the light of its public investment and its obligations 
for continued operation and maintenance of the airport, and on the other hand 
bearing a reasonable relationship to the tariffs imposed by the Airlines on 
the public for air transportation. 

Operation by the Air Force at O'Hare Field, while subject to limita- 
tions of not exceeding 25 per cent of the capacity of the field, are not in the 
best public interest since they may interfere to some extent with the full 
development of the field as a prime commercial airport and since the terms under 
which they operate are vague and uncertain. 

A settlement with the Air Forces, therefore, clearly defining the 
scope and extent of their operations, outlining a division of costs of operating 
the field and preferably leading to the ultimate transfer of all military 
aviation from the field is of prime importance. 

Concurrently the plans should be formulated for the issuance of bonds 
by the City of Chicago to cover the portions of the costs of Stage II and Stage 
III which will become obligations of the City. 

An analysis of the figures of costs indicates that on Stage II 
$9*000,000 applies to items for which Federal and State funds are not applicable 
so that this amount must be covered by City funds. A further analysis indicates 



-9- 

that of this amount $4,000,000 covers the costs of improvements on which fixed 
rentals apply or other income is produced so that it is logical that revenue 
bonds might he issued therefor. The balance, $5,000,000, is for improvements 
for the benefit of the general public which should logically be derived from 
general obligation bonds. 

The cost of Stage III may be similarly analyzed with the result that 
$2,000,000 of such costs are for income producing facilities and should be 
financed by revenue bonds, while the balance, $6,700,000, is of such a character 
as to be financed by general obligation bonds. 

Legislation designed to improve the salability of such revenue bonds 
by pledging all revenue from Airports should be introduced in the State 
Legislature meeting in January 1955. 

To meet the City's obligations, therefore, on Stages II and III would 
require the issuance of revenue bonds to the total of $6,000,000, $4,000,000 of 
which will be needed in the next two years and $2,000,000 within the following 
three years. In addition thereto, it will be the necessity for the issuance of 
$11,700,000 in general obligation bonds, $5, 000, 000 of which will be needed 
within the next two years and $6,700,000 within the following three years. 




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- E G E N D 

■lAL STAGE 16 GATES (existing runways) 

\ \ 

kGE U 29 GATES (new 8,000 ft. runway) n n 

GE H 37 GATES (two new 8,000 ft. runways) 



GATE POSITION 
STAGE^DEVELOPMENI 



PREPARED by 

Ralph h./ burke 
airport consultant 

CITY OF 'CHICAGO 



i ' Ao 




STAGE HI; PLAN C 
TRANSPORTATION LEVEL 



LEGEND 

ESCALATOR 

BAGGAGE CHUTE 

CONVEYOR 

LOCKER ROOM 

UTILITY ROOM 

MENS REST ROOM 

WOMENS REST ROOM 

ELEVATOR 

CATERING 

SANITARY ROOM 

AIRLINE SPACE 

ROAD EXHAUST ROOM 

ELECTRICAL SUBSTATION 

BAKERY &. KITCHEN 

PASS. LOADING PLATFORM 

TRUCK SERVICE ROAD 

BUS & PASS. SERVICE ROAD 

PARKING LOT 



PREPARED BY 

RALPH H. BURKE 

AIRPORT CONSULTANT 

CITY OF CHICAGO 



/ 

1 



FINGER- B 



N 



~® 



FINGER C 



© 



LEGEND 

-TICKETING 
-BAGGAGE CLAIM 
-WAITING ROOM 
-CONCESSIONS 
"PUBLIC SERVICES 
"MENS REST ROOM 
_ " WOMENS REST ROOM 

®~ COFFEE SHOP 

®- RESTAURANT 

©-KITCHEN 

©-OFFICE SPACE 

©-GATES 

p|- ESCALATOR 

0- ELEVATOR 

r AIRPORT MANAGER 
CONTROL TOWER 
(UPPER FLOORS) 
@- NURSERY 
@ PLANE GATE 






STAGE HI PLAN C 
CONCOURSE LEVEL 



PREPARED BY 

RALPH H.BURKE 

AIRPORT CONSULTANT 

CITY OF CHICAGO 




LEGEND 

PAVING 



EXISTING 
ABOVE GROUND CONSTRUCTION 
IN TERMINAL AREA 



PREPARED BY 

RALPH H. BURKE 

AIRPORT CONSULTANT 

CITY OF CHICAGO 




BOILER HOUSE 



STORM SEWERS 
SANITARY SEWERS 
GASOLINE LINES 
WATER LINES 
STEAM LINES 
ELECTRICAL LINES 
UTILITY TUNNELS 



EXISTING 
UNDERGROUND CONSTRUCTION 
IN TERMINAL AREA 



PREPARED BY 

RALPH H. BURKE 

AIRPORT CONSULTANT 

CITY OF CHICAGO 



LEGEND 



ORMER RAILROAD TRACKS 




RELOCATION OF RAILROAD 



FIGURE 10 



AIRPORT CONSULTANT 
CITY OF CHICAGO 



EXPLANATORY NOTES ON TRAFFIC DATA 
(EXPLANATION FOE FIGURES 13 & 1*0 

Item 1. Annual scheduled passenger movements at Chicago are based on a Pearl 
Biometric curve for the actual years in 1931 > 19^1 > & 1951 for the 
minimum traffic volume and the years 1933> 19^3* & 1953 for the 
probable traffic volume. 

Item 2. Annual passenger movements to remain at Midway based on approximately 
70$ of 1955 traffic volume. 

Item 3« Passenger movements to go to O'Hare will be Item 1 less Item 2. 

Item k* Annual scheduled passenger plane landings at O'Hare based on the 
computation of one half of annual scheduled passenger movements, 
divided by available seats per plane times load factor. This quotient 
is then increased by 10$ for year 1950 plus an additional 1$ per year 
till i960 to allow for scheduled cargo flights. (Load factor taken 
as 1952 - 6%, 1953 - 6%, 195^ - 67$, 1 955 - 68?&, 1956 - 69$ and 
from 1957 onward 70$.) 

Item 5« Average seats available per plane taken from Regional Plan Association 
Bulletin "Major Airports" which lists estimated future sizes. 

Item 6. Gross take off weights are the average maximum authorized or estab- 
lished gross take off in pounds from 1952 base average of 1200 pounds 
per available seat increased by 1800 pounds per each additional seat. 

Item 7» Gasoline consumption is based on 17.2 gallons per available seat for 
each departing plane listed in Item h with cargo planes assumed as 
having the same basis. 

Item 8. Square feet of hangar space rentable (land only) taken as 11 s.f. per 
scheduled plane movement listed in Item k. 

Item 9. Automobile parking spaces based on 790 spaces being adequate for 
2,&%2,000 passenger movements in 19^9. 

Item 10. Gate requirements based on growth of passenger movements reduced by 
increased plane sizes as follows: 

§ gates required * 19 gates x 30*3 seats in 19^7 X # pass, yr X 
2,540,000 pass, in 19^7 X # seats yr X 

Item 11. Peak hour plane landings computed on annual scheduled passenger plane 
movements X % h$ peak day X 6.5$ peak hours X 66 2/jfo major direction 
X 120$ allowance for nonscheduled traffic. 



CHICAGO PLAN COMMISSION 



EXPLANATORY NOTES ON TRAFFIC DATA — page two 

Items 12. Landing runways required based on peak hour landings times 13C$ for 
& 13 ♦ peak 10 minutes divided by number of instrument landings possible per 
hour by years. Takeoff runways required based on one half peak hour 
landings divided by number of instrument takeoffs possible per hour 
by years. Estimated time in minutes of instrument landings by year 3 
1955 - 2.25, 1956 - 2.20, 1957 - 2.15, 1958 - 2.10, 1959 - 2.05, 
i960 - 2.00, 1961 - 1.95, 1962 - 1.90, 1963 - I.85, 1964 - 1.80, 
1965 - 1.75, 1970 - 1.50, 1975 - 1.25, Ultimate - 1.25. Estimated 
time of instrument takeoffs by years 1955 - 1.50, reduced by .05 
minutes per year to 1.00 minutes in 1965. 

Item 14. Total plane movements is based on passenger line scheduled movements 
from Item h plus military plane movements and plane movements other 
than scheduled passenger line and military. 

Item 15. Military plane movements taken from present 0*Hare for beginning 

years and limited to 86,000 annually (past 0'Hare military maximum 
movements during period of a training installation.) 

Item 16. Other plane movements for beginning years taken from present 0'Hare 
and limited in future to 25$ of passenger line scheduled movements. 



PRC'EARS 



ITEM 



1955 



ANNUAL PASSENGER MOVEMENTS 8.969,000 10. 
AT CHICAGO 

LESS MIDWAY FIXED 
NUMBER 



1965 1970 1975 ULTIMATE 

) 19.231.000 21.256.000 22.029.000 22.437.000 



SCHEDULED PASSENGER LINE 
PLANE LANDINGS - O'HARE 



AVERAGE SEATS 
PER PLANE 



AVERAGE GROSS WEIGHT OF 
SCHEDULED AIRCRAFT 



5.500.000 5.5) 5.500.000 5.500.000 5.500.000 5.500.000 



ANNUAL PASSENGER MOVEMENTS 3,469.000 4.6) 13.721.000 15.756.000 16.529.000 16.937 000 
AT O'HARE • 



) 203.000 225.000 236.000 242.000 

58 60 60 60 

77.400 81.000 81.000 81.000 

LTE^Er'o'HARE 50 " "°^ A4 ' 00 ° 6? ' 5 J 202.513.000 232.200.000 243.500.000 250.000.000 

1.344.000 1,7| 4> 4 66i00 o 4,950.000 5.192.000 5.324.000 



SQUARE FEET OF HANGAR 
RENTABLE 



NUMBER AUTOMOBILE PARK- 
ING SPACES NEEDED 



NUMBER OF GATES 
NEEDED - O'HARE 



PEAK HOUR PLANE 
LANDINGS 



RUNWAYS REQUIRED . 
LANDING 



-RUNWAYS REQUIRED - 
TAKEOFF 



TOTAL PLANE 
MOVEMENTS 



MILITARY PLANE 
MOVEMENTS 



233.000 



PLANE MOVEMENTS - OTHER 
THAN PASSENGER & MILITARY 



5UST, 1954 



4.600 



3.9 



3.7 



3.2 



3.3 



•6 .7 .7 .7 

592.000 648.000 676.000 691.000 

86.000 86.000 86.000 86.000 



100.000 112.000 118.000 121.000 

PREPARED BY 
RALPH H. BURKE 
AIRPORT CONSULTANT 



ITEM 



1955 



PROBABLE ESTIMATE 

1956 1957 



5.500,000 5.500,000 5.500.000 



PASSENGER MOVEMENTS 8,969.000 10,174,000 11.404.000 
I AT CH I CAGO 

I LESS~MIDWAY FIXED 
I NUMBER 

PASSENGER MOVEMENTS 3,469.000 4,674.000 5.904.000 
| AT O'HARE • . 

61,100 80,200 98,000 



CURVE OF TRAFFIC DATA FOR SCHEDULED PASSENGER AIRL 

1958 1959 1960 1961 1962 

12.629,000 13.821.000 14.955.000 16.008,000 16.967.000 

5,500.000 5,500.000 5.500.000 5.500,000 5,500,000 

7.129,000 8.321.000 9.455.000 10.508.000 11.467.000 

118,000 136,000 153,000 167,000 179,000 



INES AT O'HARE BY YEARS 

1963 1964 1965 1970 1975 ULTIMATE 

17.825,000 18.578,000 19,231.000 21,256,000 22.029.000 22.437.000 

5.500.000 5,500.000 5.500.000 5.500,000 5.500.000 5.500.000 

12,325.000 13,078.000 13,731.000 15,756,000 16.529.000 16.937.000 

188.000 197.000 203.000 225.000 236.000 242.000 



56 



57 



58 



60 



60 



60 



59.400 61,200 63.000 



64,800 66,600 68,400 70,200 72,000 

103,509,000 121.638.000 139,474,000 155.110.000 169.334.000 ' 

1,344.000 1,764.000 2.112,000 2.596,000 2,992,000 3,366.000 3,674.000 3.938.000 

966 1.300 1.645 1.980 2,320 2,630 2,930 3,190 



73,800 75,600 77.400 81.000 81,000 81,000 

31,082.000 193.139.000 202,513,000 232.200,000 243.500.000 250.000.000 
4.136.000 4,334,000 4.466.000 4,950.000 5.192.000 5.324.000 



2.7 3.1 



3.6 3.6 



16^»LANE MOVEMENTS - OTHER 
J|^BhAN PASSENGER & MILITARY 



AUGUST y 



233,000 279,000 325,000 

60,000 64.000 69.000 

50,800 54.600 60.000 



375.000 423,000 467.000 503,000 529.000 

75.000 81.000 86.000 86.000 86.000 

64,000 70.000 75.000 80,000 85.000 

FIGURE 13 



.6 



.7 



552.000 575.000 592.000 648.000 676.000 691.000 

86.000 86.000 86,000 86.000 86.000 86.000 

90,000 95,000 100,000 112.000 118.000 121.000 

PREPARED BY 
RALPH H. BURKE 
AIRPORT CONSULTANT 



1. ANNUAL PASSENGER MOVEMENTS 
AT CHICAGO 



2. LESS MIDWAY FIXED 
NUMBER 



3. ANNUAL PASSENGER MOVEMENTS 
AT O'HARE 



4. SCHEDULES PASSENGER LINE 
PLANE LANDINGS - O'HARE 



MINlrEARS 

1955 1965 1970 1975 ULTIMATE 

7,690.000 8, 14,129,000 15.269,000 15.707.000 15.950.000 

5.500.000 5, 5.500.000 5.500.000 5.500.000 5.500.000 

2,190,000 3.1 8.629.000 9.769.000 10.207.000 10.450,000 



5. AVERAGE SEATS 
PER PLANE 



6. AVERAGE GROSS WEIGHT OF 
SCHEDULED AIRCRAFT 



39,000 



59.400 



12P.000 140.000 146.000 149.000 



77,400 81.000 81,000 



ANNUAL GALLONS OF GASO- 
LINE 'PUMPED - O'HARE 



SQUARE FEET OF HANGAR 
RENTABLE 



NUMBER AUTOMOBILE PARK- 
ING SPACES NEEDED 



NUMBER OF GATES 
NEEDED - O'HARE 



PEAK HOUR PLANE 
LANDINGS 



RUNWAYS REQUIRED 
LANDING 



RUNWAYS REQUIRED - 
TAKEOFF 



32,198.000 43. i 



TOTAL PLANE 
MOVEMENTS 



MILITARY PLANE 

MOVEMENTS 



PLANE MOVEMENTS - OTHER 
THAN PASSENGER & MILITARY 



'GUST, 1954 



127,693.000 144,480.000 150.672.000 153.768.000 



858 .000 1 . 1 



1.0 



50.000 



2.816.000 3.080.000 3.212.000 3.278.000 



2.400 



2.850 



2.910 



.4 



37 

51 

2.3 

.4 



.4 



.5 



403.000 432.000 448.000 459.000 

86.000 86.000 86.000 86.000 



61.000 66.000 70.000 



75.000 



PREPARED BY 
RALPH H. BURKE 
AIRPORT CONSULTANT 



MINIMUM ESTIMATE CURVE OF TRAFFIC DATA FOR SCHEDULED PASSENGER AIRLINES AT O'HARE BY YEARS 

1955 1956 ,957 1958 1959 1960 1961 1962 1963 1964 1965 

7.690.000 8.535.000 9.367.000 10.169.000 10.926.000 11.625.000 12.260.000 12.827.000 13.325.000 13.758.000 14.129.000 

5.500.000 5.500.000 5.500.000 5.500.000 5.500.000 5.500.000 5.500.000 5.500.000 5.500.000 5.500.000 5.500.000 

2.190.000 3.035.000 2.867.000 4.669.000 5.426.000 6.125,000 6.760.000 7.327.000 7.825.000 8.258.000 8.629.000 

39.000 52.000 64,500 77.000 89.000 99.000 107.000 114.000 120,000 124.000 128.000 



9.769.000 
140.000 



1975 ULTIMATE 

15.707.000 15.950.000 

5,500,000 5.500.000 

10.207,000 10.450.000 

146.000 149.000 



51 



53 



55 



56 



59.400 61.200 63.000 64.800 66.600 68.400 70.200 72.000 73.800 75.600 77.400 81.000 81.000 81,000 

32.198.000 43,826.000 55.470.000 67.544.000 79.602.000 90.248.000 99.382.000 107.844.000 115.584.000 121.570.000 127.693,000 144.480.000 150.672.000 153,768.000 

858.000 1,144,000 1,419,000 1,694,000 1,958.000 2.178.000 2.354,000 2.508.000 2,640.000 2,728.000 2.816,000 3,080.000 3.212.000 3.278.000 



610 



845 



1.075 



.300 



1.510 



2.040 



2.175 



188.000 218,000 246.000 275.000 303,000 329,000 351.000 372.000 385.000 394.000 403,000 

60,000 62,000 64.000 67,000 70,000 75.000 80.000 86.000 86,000 86,000 86.000 

50.000 52.000 53,000 54,000 55.000 56,000 57.000 58.000 59.000 60.000 61,000 

FIGURE 14 



AUGUST, 1954 



132.000 


448.000 


459.000 


86.000 


86.000 


86.000 


66.000 


70.000 


75.000 




PREPARED 
RALPH H. 
AIRPORT 


BY 

BURKE 
20NSULTANT 



ESTIMATED SCHEDULED AIRLINE PASSENGER 
MOVEMENTS AT O'HARE FIELD BY YEARS 



Annual Passenger 
Movements in Millions 

IS 



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BASED ON 5,500,000 ANNUAL PASSENGER MOVEMENTS AT MIDWAY AIRPORT 



AUGUST, 195U 



FIGURE 15 



PREPARED BY 
RALPH H. BURKE 
AIRPORT CONSULTANT 



ESTIMATE OF PLANE MOVEMENTS AT , HAHE FIELD 



NUMBER OF 
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I960 I965 1970 1975 ULT. 



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February 1, 1961 



COMMUNICATIONS, ETC. 



"As provided in the Local Improvement Act, the 
Board has held public hearings on said improve- 
ments with reference to the extent, nature, kind, 
character and estimated cost thereof and recom- 
mends passage of said ordinances submitted here- 
with: 

Ward 12— Alleys between W. 47th Street, W. 47th 
Place, S. Western Avenue, S. Campbell 
Avenue ; 
Ward 13— Alley between W. 66th Street, W. Mar- 
quette Road, S. Pulaski Road, S. Kom- 
ensky Avenue, etc. ; 
Ward 13— Alley between W. 58th Place, W. 59th 
Street, S. Lawndale Avenue, S. Hamlin 
Avenue ; 
Ward 13— Alleys between W. 71st Street, W. 72nd 
Street, S. Millard Avenue, S. Lawndale 
Avenue, etc. ; 
Ward 13— Alleys between W. 62nd Street, W. 63rd 
Street, S. Massasoit Avenue, S. Menard 
Avenue ; 
Ward 18— Alley between W. 81st Street, W. 82nd 
Street, S. Winchester Avenue, S. Damen 
Avenue, etc. ; 
Ward 18 — Grading, paving and improving a sys- 
tem of streets as follows: 
W. 79th Place from the east line of the 
north-south alley to the south, first east 
of S. Oakley Avenue, to the east line of 
S. Western Avenue, etc. (W. 79th Place 
System) ; 
Ward 19— Grading, paving and improving the road- 
way of S. Spaulding Avenue from a line 
parallel with and twelve (12) feet north 
of the south line of W. 111th Street to 
the north line of W. 112th Place; 
Ward 35 — Unpaved portion of the north-south al- 
ley from the north line of Lot 289, pro- 
duced west, in the Fourth Addition to 
Fullerton Central Manor, being a Sub. 
in the W/ 2 of the SE% of Section 29- 
40-13, to the north line of W. Wright- 
wood Avenue in the block between W. 
Schubert Avenue, W. Wrightwood Ave- 
nue, N. Mango Avenue and N. Menard 
Avenue ; 
Ward 41 — Alley between N. Manton Avenue, N. 
Elston Avenue, N. Central Avenue, N. 
Major Avenue, etc.; 
Ward 41— Alleys between W. Carmen Avenue, W. 
Higgins Avenue, N. Menard Avenue, N. 
Monitor Avenue ; 
Ward 41— Alleys between W. Bryn Mawr Avenue, 
W. Catalpa Avenue, N. Menard Avenue, 
N. Milwaukee Avenue, N. Marmora Ave- 
nue, N. Monitor Avenue; 
Ward 41— Grading, paving and improving the road- 
way of N. Mobile Avenue from the 
south line of W. Montrose Avenue to the 
south line of W. Berteau Avenue; 

Ward 50— Grading, paving and otherwise improv- 
ing the roadway of N. Winchester Ave- 
nue from the south line of W. Loyola 
Avenue to a line parallel with and 423.- 
78 feet south of the south line of W. 
Loyola Avenue, excepting therefrom 
that portion of N. Winchester Avenue 
from a line parallel with and one hun- 



dred and sixty (160) feet south of the 
south line of W. Loyola Avenue to the 
south line of W. Loyola Avenue." 



Placed on File — Notification to City Council as to 

Selection of Proxy to Affix Signature of City 

Comptroller to Certain Chicago-O'Hare 

International Airport Revenue 

Bonds Series 1959. 

The City Clerk transmitted the following commu- 
nication, which was Placed on File: 

City of Chicago 
Office of City Comptroller 

January 27, 1961. 
To The Honorable, The City Council of the City of 
Chicago: 

Gentlemen — Please take notice that I have se- 
lected and do hereby designate T. F. Murphy as my 
proxy for me and in my name, place and stead, to 
affix my signature as City Comptroller to the fol- 
lowing — 

$2,000,000 of Chicago-O'Hare International 
Airport Revenue Bonds 
Series 1959 
dated January 1, 1959 
due January 1, 1999 
in denominations of $1000 
each, numbered as follows: 
M-38091 - M-39090 
M-57001 - M-58001. 
Appended hereto is a written signature as my 
name is to appear on said bonds, executed by the 
said T. F. Murphy, with the proxy's own signature 
underneath, as required by statute. 
Very truly yours, 
(Signed) Alvin L. Weber, 

City Comptroller. 
[Signatures appended as stated] 



Placed on File — Written Requests and Demands of 

Board of Education on City Council to Direct 

County Clerk to Reduce Certain 1960 

Taxes for School Building Bonds. 

The City Clerk transmitted the following commu- 
nication, which was, together with the certified copies 
of resolutions transmitted therewith. Placed on File: 

Board of Education 
City of Chicago 

January 25, 1961. 
To The Honorable Richard J. Daley, 
Mayor of the City of Chicago, 
and the City Council Asseinbled : 
Gentlemen — The Board of Education of the City 
of Chicago at its regular meeting held January 25. 
1961 adopted the following resolutions, certified 
copies of which are herewith sent to you : 

1 — Request and Demand on City Council to Au- 
thorize and Direct County Clerk of Cook 
County, Illinois, To Reduce 1960 Taxes To Be 



JOURNAL— CITY COUNCIL— CHICAGO 



February 1, 1961 



Extended for the Purpose of Providing Reve- 
nue for Payment of the Principal of and In- 
terest on School Building Bonds of 1960 in 
the Sum of $160,622 
2 — Request and Demand on City Council To Au- 
thorize and Direct County Clerk of Cook 
County, Illinois, To Reduce 1960 Taxes To Be 
Extended for the Purpose of Providing Reve- 
nue for Payment of the Principal of and In- 
terest on School Building Bonds, Series A, in 
the Sum of $107,081 
3 — Request and Demand on City Council to Au- 
thorize and Direct County Clerk of Cook 
County, Illinois, To Reduce 1960 Taxes To Be 
Extended for the Purpose of Providing Reve- 
nue for Payment of the Principal of and In- 
terest on School Building Bonds, Series B, in 
the Sum of $91,683. 
The Board of Education of the City of Chicago 
respectfully requests that said copies be filed with 
the City Council of the City of Chicago. 

Respectfully submitted, 
Board of Education of the 
City of Chicago 
By (signed) W. G. Caples, 

President. 
Attest: (signed) H. H. Buck, 



Official Bonds Approved. 

The City Clerk presented official bonds as follows: 
James Y. Carter, as Public Vehicle License Com- 
missioner, 

B. Emmet Hartnett as Chairman of the Zoning 
Board of Appeals, 

Dr. Eric Oldberg as President of the Board of 
Health, 
each bond being in the penal sum of five thousand 
($5,000.00) dollars with the United States Fidelity 
and Guaranty Company as surety, and each bond 
bearing the approval of the Corporation Counsel as 
to legality and of the City Comptroller as to surety. 

Committee consideration was dispensed with by un- 
animous consent, and on motions made by Alderman 
Keane each of the said bonds was Approved, by yeas 
and nays as follows : 

Yeas — Aldermen DArco, Harvey, Metcalfe, Holman, 
Despres, Miller, Bohling, Condon, Lupo, Pacini, Nowa- 
kowski, Zelezinski, J. P. Burke, Sheridan, Slight, Mur- 
ray, Campbell, Bonk, Janousek, Tourek, Lewis, Mar- 
zullo, Girolami, T. F. Burke, Ronan, Keane, Sulski, 
Sande, Laskowski, Massey, Corcoran, Cullerton, Sha- 
piro, Simon, Bell, Bauler, Rosenberg, Wigoda — 38. 

Nays — None. 



REPORTS OF COMMITTEES. 



Committee reports were submitted as indicated below. No request under the statute was made by any 
two aldermen present to defer any of said reports, jor final action thereon, to the next regular meeting of 
the Council, except where otherwise indicated. 



COMMITTEE ON FINANCE. 



Authority Granted for Issuance of Additional 
$35,000,000 Chicago-O'Hare International 
Airport Revenue Bonds, and Sale of 
$25,000,000 of Said Bonds on Cer- 
tain Terms Approved. 

The Committee on Finance submitted the following 
report : 

Chicago, February 1, 1961. 
To the President and Members of the City Council: 
Your Committee on Finance held a Public Hearing 
on January 26, 1961, on the necessity and desir- 
ability of the issuance of additional Chicago-O'Hare 
International Airport Revenue Bonds in the prin- 
cipal amount of $35,000,000, pursuant to Section 
2.15 of the Ordinance adopted on December 29, 
1958. Under said Ordinance the outstanding Chi- 
cago-O'Hare International Airport Revenue Bonds 
Series of 1959 were issued. Said Public Hearing was 
responsive to a resolution adopted by the City Coun- 
cil on January 17, 1961 (C.J. pg. 4224) and pur- 



suant to notice of such Hearing published in the 
Chicago's American on January 18, 1961 by the 
City Clerk in accordance with the order and direc- 
tion of the City Council. 

Your Committee on Finance finds that it is desir- 
able and necessary that the City Council authorize 
the issuance of an additional $35,000,000 Chicago- 
O'Hare International Airport Revenue Bonds to 
complete the construction of the Improvements 
authorized pursuant to the Ordinance adopted by 
the City Council on December 29, 1958. 

A Certificate of the Consulting Engineer has been 
filed with the City Clerk, which is transmitted here- 
with to the City Council, certifying that sufficient 
funds are not available to pay the cost of com- 
pleting the Improvements for which the Chicago- 
O'Hare International Airport Revenue Bonds Series 
of 1959 have been issued; that the proceeds from 
the issuance of Bonds in the principal amount of 
$35,000,000, provided for by the Supplemental Ordi- 
nance transmitted herewith to the City Council, is 
necessary to provide funds for the completion of 



February 1, 1961 



REPORTS OF COMMITTEES 



4353 



the Improvements, and will be sufficient to pay the 
balance of the cost of such Improvements. 

Your Committee on Finance has had under con- 
sideration a communication from the City Comp- 
troller, transmitting a proposal in the form of a 
Purchase Contract for the purchase of $25,000,000 
Chicago-O'Hare International Airport Revenue 
Bonds Series A of 1961, and recommending the ac- 
ceptance of said proposal. The Purchase Contract 
and Exhibits attached thereto are hereby trans- 
mitted to the City Council. 

The Consulting Engineer's Certificate herein- 
above referred to reads as follows : 

State of Illinois 1 
County of Cook j 

I, the undersigned, do hereby certify that I am 
the Consulting Engineer employed by the City of 
Chicago, in accordance with the provisions of an 
"Ordinance authorizing the issuance of Chicago- 
O'Hare International Airport Revenue Bonds 
Series of 1959 for the purpose of improving and 
extending said Airport and providing for pay- 
ment of principal of and interest on said Bonds", 
adopted by the City Council of the City of Chi- 
cago on December 29, 1958 (hereinafter referred 
to as the "Ordinance"), and as such Consulting 
Engineer I hereby certify as follows : 

(a) That I have read the pertinent provisions 
of the Ordinance, to which this Certificate re- 
lates, specifically Section 2.15 of the Ordinance. 

(b) That I have examined the Ordinance, ac- 
counts, plans and specifications, and the contracts 
that have been let in connection with the con- 
struction of the Improvements provided for by 
the Ordinance, the Report of Naess and Murphy 
dated January 2, 1961 and Supplemental Report 
dated January 17, 1961, concerning the com- 
pletion of such Improvements other than han- 
gars, and in my opinion have made such examina- 
tion as is necessary to enable me to express an 
informed opinion with respect to the need for 
additional funds to complete the Improvements 
provided for by the Ordinance. 

(c) That the amount expended for the Im- 
provements contemplated by the Ordinance, other 
than hangars, to date of this Certificate is the 
sum of $27,488,434. 

(d) That the amount of money in the Con- 
struction Fund credited to the General Construc- 
tion Account at the date of this Certificate avail- 
able for the construction of such Improvements, 
other than hangars, is $49,750,368, of which 
$45,282,925 has been committed on contracts, 
leaving a balance available in the General Con- 
struction Account of $4,467,443. 

(e) That the amount of additional funds nec- 
essary to complete the construction of such Im- 
provements, other than hangars, is the sum of 
$37,483,582, itemized as follows: 

RB-3, Paving, Grading & Utilities $ 60.000 

RB-7, Second Extension to Runway 
14R-32L, and Outer Circular Taxi- 
way ( Revenue Bond portion of work 

only) 870,000 

RB-8, Water Main & Sanitary Sewers.. 200,000 
RB-16, Concourse Buildings Super- 
structure 50,000 



RB-20, Entrance Road & Site Improve- 
ments 670,000 

RB-27, Utilities, Phase 1 100,000 

RB-33, Utilities, Phase II 1,855,500 

RB-35, Heating & Refrigeration Plant 

Superstructure 4,293,377 

RB-38, Fire Station 614,422 

RB-39, Heating & Refrigeration Plant 

Structural Steel 225,000 

RB-40, Secondary Electrical Switch- 
gear 120,000 

A. Apron and Taxiway Pavement 9,913,628 

B. Underground Electrical Duct 
System 169,068 

C. Terminal Buildings Seating, Signs 

& PA System 369,750 

D. Airfield Lighting (Phase I) 388,638 

E. Service Roads & Misc. Asphalt 
Pavement 707,300 

F. Restaurant Building Superstructure 
(Revenue Bond Portion Only) 2,089,388 

G. Parking Lot, Lower Level RoaU, 
Paving, Grading & Utilities 4,182,9oo 

H. Topsoiling and Seeding 241,000 

I. Loop Tunnel Piping 1,419,950 

J. Airfield Lighting (Phase H) 237,150 

K. Road Signs & Street Markers 281,480 

L. Landscaping 608,271 

M. Central Heating & Air Conditioning 

Control System 250,000 

N. Misc. Paving, Grading, Utilities & 

Demolition 981,055 

O. International Arrivals & Departure 

Building 1,191,000 

Total Construction Costs $32,088,912 

Architectural-Engineering Fees @ 

5-1/2% 1,764,890 

Surveying and Materials Testing Esti- 
mated @ 1% 320,889 

Estimated Miscellaneous Costs 100,000 

Contingency @ 10% of Construction 

Costs 3,208,891 



Total $37,483,582 
Less Amount Available in General 
Construction Account (Paragraph 
(d) above) 4.467,443 



Total Additional Amount Needed $33,016,139 

(f ) That in the opinion of the undersigned, the 
moneys in the Construction Fund credited to the 
General Construction Account are not sufficient 
to pay the cost of completion of such Improve- 
ments and that the issuance of the Bonds in the 
stated principal amount of $35,000,000 provided 
for in the Supplemental Ordinance, attached 
hereto and marked Exhibit A, is necessary to pro- 
vide funds for the completion of such Improve- 
ments, which will be sufficient to pay the balance 
of the cost of such Improvements (after setting 
aside the amounts required to be set aside to pay 



JOURNAL— CITY COUNCIL— CHICAGO 



February 1, 1961 



interest up to and including January 1, 1962). 
The foregoing figures set forth in paragraphs c 
thru e inclusive are as of January 1, 1961. 

This Certificate is certified to the City Council 
in compliance with Section 2.15 of the Ordinance. 
Dated this 1st day of February, 1961. 

(Signed) Charles F. Murphy 
Consulting Engineer 

Your Committee on Finance recommends that the 
Purchase Contract be accepted and the proposed 
Supplemental Ordinance transmitted herewith au- 
thorizing the issuance of $35,000,000 principal 
amount of Chicago-O'Hare International Airport 
Revenue Bonds, and approving the sale of $25,000,- 
000 of said additional Bonds in accordance with the 
terms of said Purchase Contract, be adopted. 

The Purchase Contract is set out in haec verba 
in Section 7 of the proposed Supplemental Ordi- 
nance transmitted herewith. Exhibit A attached to 
the Purchase Contract and Exhibit A attached to 
the Consulting Engineer's Certificate are exact 
copies of said proposed Supplemental Ordinance, 
which, including the Purchase Contract, will be 
printed in full in the Journal of the Proceedings 
immediately following the record of its passage by 
Your Honorable Body. Exhibit B attached to the 
Purchase Contract contains an Official Statement 
to be signed by the Mayor for and on behalf of the 
City of Chicago, relating to the issuance of the 
proposed Revenue Bonds. That Exhibit B is iden- 
tical with Exhibit B attached to the proposed Sup- 
plemental Ordinance and will be printed in full in 



the Journal of the Proceedings immediately follow- 
ing the Supplemental Ordinance. 

Your Committee on Finance recommends passage 
of the Supplemental Ordinance hereto attached with 
appended exhibits made a part thereof providing 
for issuance and sale of such Revenue Bonds. 

This recommendation was concurred in by 12 
members of the committee, with no dissenting vote. 
(Signed) Thomas E. Keane, 

Chairman. 

Alderman Keane moved to Concur in the recom- 
mendation contained in the Finance Committee's re- 
port and Pass the proposed Supplemental Ordinance 
transmitted therewith. The motion prevailed and said 
proposed Supplemental Ordinance was Passed, by yeas 
and nays as follows: 

Yeas — Aldermen Harvey, Metcalfe, Holman, Des- 
pres, Miller, Bohling, Condon, Lupo, Pacini, Nowakow- 
ski, Zelezinski, Egan, J. P. Burke, Sheridan, Slight, 
Murray, Campbell, Bonk, Janousek, Tourek, Lewis, 
Marzullo, Sain, Girolami, T. F. Burke, Ronan, Keane, 
Sulski, Sande, Laskowski, Massey, Corcoran, Culler- 
ton, Shapiro, Simon, Bell, Bauler, Rosenberg, Wigoda 
—39. 

Nays — None. 

Alderman Janousek (seconded by Alderman Camp- 
bell) moved to Reconsider the foregoing vote. The 
motion was Lost (Alderman Bohling voting "Yea"). 



The said Supplemental Ordinance as passed, and Exhibit B attached thereto, read as follows, respectively: 



February 1, 1961 REPORTS OF COMMITTEES 



SUPPLEMENTAL ORDINANCE authorizing the issue of an addi- 
tional $35,000,000 principal amount of Chicago-O'Hare International 
Airport Revenue Bonds and approving the sale of $25,000,000 of said 
additional Bonds. 



WHEREAS, the City Council of the City of Chicago, Illinois, adopted an ordinance on Decem- 
ber 29, 1958 (said ordinance being herein called the "Ordinance"), entitled "ORDINANCE authorizing 
the issuance of Chicago-O'Hare International Airport Revenue Bonds Series of 1959 for the purpose of 
improving and extending said Airport and providing for payment of principal of and interest on 
said bonds", and Chicago-O'Hare International Airport Revenue Bonds Series of 1959 in the principal 
amount of One Hundred Twenty Million Dollars ($120,000,000) were issued and sold pursuant to the 
authority of said Ordinance to defray the cost of such Improvements ; and 

WHEREAS, the City is now in the process of constructing said Improvements to the Chicago- 
O'Hare International Airport, as authorized pursuant to the Ordinance, and it appears that suffi- 
cient funds are not available to pay the cost of completing the Improvements for which said Bonds 
were issued ; and 

WHEREAS, it is provided in Section 2.15 of the Ordinance that if sufficient funds are not avail- 
able to pay the cost of completing the Improvements for which Bonds have been issued under the 
limitations prescribed by the Ordinance, additional Bonds to the extent necessary (as shown by a 
certificate of the Consulting Engineer) to provide additional funds for payment of the cost of 
completing such Improvements, other than the construction of hangars, may be issued under and 
secured by the Ordinance at any time or from time to time, ranking on a parity with the Bonds 
then outstanding and issued under the Ordinance ; and 

WHEREAS, the Consulting Engineer, as required by Section 2.15 of the Ordinance, has certi- 
fied as to: 

(i) The amount expended for the Improvements, other than hangars, to date of such certifi- 
cate, and the amount of money in the Construction Fund credited to the General Construction 
Account then available for the construction of such Improvements; 

(ii) The amount of additional funds necessary to complete the construction of such Im- 
provements, other than hangars, and stating in the opinion of the signers the moneys in the 
Construction Fund credited to the General Construction Account are not sufficient to pay the 
cost of completing such Improvements and that the issuance of Bonds in the stated principal 
amount provided in this Supplemental Ordinance is necessary to provide funds for the com- 
pletion of such Improvements, and that the proceeds of such Bonds will be sufficient to pay 
the balance of the cost of such Improvements ; 

(iii) The estimated completion date of such Improvements, other than hangars. 

and 

WHEREAS, it is necessary and essential and for the best interests of the City and the public 
that additional funds be provided for the completion of the Improvements, other than the con- 
struction of hangars, authorized and provided for by the Ordinance, and that additional Chicago- 



4356 JOURNAL— CITY COUNCIL— CHICAGO February 1, 1961 

O'Hare International Airport Revenue Bonds be issued for that purpose within the limitations 
and restrictions as provided for by the Ordinance; and 

WHEREAS, it is necessary in order to prevent a delay in the construction of said Improve- 
ments that additional Airport Revenue Bonds be authorized in the principal amount of Thirty-five 
Million Dollars ($35,000,000), and of said amount of Bonds that Twenty-five Million Dollars 
($25,000,000) be sold immediately ; and 

WHEREAS, a proposal for the purchase of Twenty-five Million Dollars ($25,000,000) of addi- 
tional Bonds has been submitted to the City Council and is now before the City Council, which 
proposal is in the form of a Purchase Contract ; and 

WHEREAS, it is deemed advisable and in the best interests of the City of Chicago that said 
proposal and contract be accepted by the City Council; 

NOW, THEREFORE, Be It Ordained by the City Council of the City of Chicago : 

Section 1. This Supplemental Ordinance is supplemental to and is adopted in accordance with 
the provisions of Section 2.15 of the Ordinance. 

Section 2. The definitions in the Ordinance shall apply to this Supplemental Ordinance, and all 
of the terms, covenants, provisions and restrictions of the Ordinance shall be applicable to the 
additional Bonds authorized by this Supplemental Ordinance. 

Section 3. All of the terms and provisions of this Supplemental Ordinance shall be deemed to 
be a part of the terms and conditions of the Ordinance for all purposes, and the Ordinance and this 
Supplemental Ordinance shall be read, taken and be construed as one and the same instrument. 

Section 4. There is hereby authorized and directed to be executed and issued and sold and 
delivered to a purchaser or purchasers, in the manner and subject to the limitations hereinafter set 
forth, Thirty-five Million Dollars ($35,000,000) additional principal amount of Chicago-O'Hare Inter- 
national Airport Revenue Bonds, of which Twenty-five Million Dollars ($25,000,000) principal 
amount shall be designated Series A of 1961 (herein called the "Series A of 1961 Bonds"), and Ten 
Million Dollars ($10,000,000) principal amount shall be designated Series B of 1961 (herein called the 
"Series B of 1961 Bonds"), all of which shall rank on a parity with the Bonds outstanding and issued 
under the Ordinance, and shall be executed, delivered and issued under and secured by the Ordinance. 
The Series A of 1961 Bonds and the Series B of 1961 Bonds are herein sometimes collectively called 
"The Bonds (1961 Issue)". 

Section 5. The Bonds (1961 Issue) shall be issued pursuant to Section 2.15 of the Ordinance 
for the purpose of providing additional funds for the payment of the cost of completing the Im- 
provements, other than the construction of hangars, according to the plans and specifications on 
file in the office of the City Clerk on the date of adoption of the Ordinance and for the objects and 
purposes set forth in the above mentioned Certificate of the Consulting Engineer, a certified copy 
of which Certificate shall be filed by the City Clerk with the Depositary and the Comptroller of the 
City, in accordance with the provisions of Section 2.15 of the Ordinance, and which Certificate is 
hereby approved by the City Council. 

Section 6. The Series A of 1961 Bonds shall bear interest from January 1, 1961, at the rate of 
four and three-quarters per cent (4%%) per annum, payable on the first day of July, 1961, and 
semiannually thereafter on the first days of January and July in each year, and shall mature and 
become payable on January 1, 1999. Coupon Series A of 1961 Bonds shall be in the denomination of 
$1,000 each, be numbered consecutively from M-120,001 upwards, and be dated as of January 1, 1961. 



February 1, 1961 REPORTS OF COMMITTEES 4357 

Registered Series A of 1961 Bonds shall be numbered RA-1 upwards and all Series A of 1961 
Bonds shall be issued in the form provided in the Ordinance with appropriate changes in the title, 
date of issue, initial interest payment date, and redemption provisions, with appropriate references 
to this Supplemental Ordinance, to comply with the provisions hereof, and the interest coupons 
attached to Coupon Series A of 1961 Bonds shall be in the form provided for in the Ordinance with 
appropriate changes to comply with the provisions hereof. 

The Series A of 1961 Bonds shall be redeemable, prior to their maturity, at the option of the 
City, in whole or in part, from time to time, through the use of Revenues, on any interest payment 
date on or after January 1, 1965, on thirty days notice only as in the Ordinance provided, at the 
applicable redemption price set forth in the following schedule, together with the interest accrued 
to the date fixed for redemption: 

Redemption Price 
Period (Percentage of 

(Both dates inclusive) Principal Amount) 

January 1, 1965 to December 31, 1968 104^% 

January 1, 1969 to December 31, 1973 104^ % 

January 1, 1974 to December 31, 1977 103j4% 

January 1, 1978 to December 31, 1980 103% 

January 1, 1981 to December 31, 1983 102% 

January 1, 1984 to December 31, 1986 101% 

January 1, 1987 to December 31, 1989 100^% 

January 1, 1990 and thereafter 100% 

The Series A of 1961 Bonds shall also be redeemable, at the option of the City, as a whole, 
from any funds other than Revenues at any time on or after January 1, 1974, on thirty days notice, 
only as in the Ordinance provided, at the applicable redemption price set forth in the following 
schedule, together with interest accrued to the date fixed for redemption : 

Redemption Price 

(Percentage of 
Principal Amount) 



January 1, 1974 to December 31, 1977 104^% 

January 1, 1978 to December 31, 1980 104% 

January 1, 1981 to December 31, 1983 103% 

January 1, 1984 to December 31, 1986 102% 

January 1, 1987 to December 31, 1989 100^% 

January 1, 1990 and thereafter 100% 

Section 7. The sale of the Twenty-five Million Dollars ($25,000,000) Series A of 1961 Bonds at 
the price of one hundred and three and thirty hundredths per cent (103.30%) of the principal amount 
thereof, plus accrued interest on the principal amount thereof, in accordance with the terms of the 
Purchase Contract therefor now before this City Council, in words and figures as follows, to-wit : 



JOURNAL— CITY COUNCIL— CHICAGO February 1, 1961 

$25,000,000 

CITY OF CHICAGO 

CHICAGO-O'HARE INTERNATIONAL AIRPORT 

REVENUE BONDS, SERIES A OF 1961 

Due January 1, 1999 



PURCHASE CONTRACT 

Chicago, Illinois 
February 1, 1961 
City Council of the City of Chicago 
121 North LaSalle Street 
Chicago, Illinois 

Dear Sirs : 

The undersigned, Glore, Forgan & Co., Manager and A. C. Allyn and Company, Incorporated, 
Halsey, Stuart & Co. Inc., Harriman Ripley & Co., Incorporated, Hayden, Stone & Co., and Stifel, 
Nicolaus & Company, Incorporated, Co-Managers (hereinafter called the "Underwriters") hereby 
agree with the City of Chicago, a municipal corporation of the State of Illinois (hereinafter called 
"City"), as follows: 

1. The City proposes to issue Twenty-five Million Dollars ($25,000,000) principal amount of its 
Chicago-O'Hare International Airport Revenue Bonds Series A of 1961, dated January 1, 1961, due 
January 1, 1999, with interest at the coupon rate of four and three-quarters per cent (4J4%), payable 
July 1, 1961 and semiannually thereafter (hereinafter called the "Bonds"), pursuant to its Ordinance 
adopted December 29, 1958, and a Supplemental Ordinance to be adopted by the City Council in the 
form attached hereto marked Exhibit A, authorizing the issue of an additional Thirty-five Million 
Dollars ($35,000,000) principal amount of Chicago-O'Hare International Airport Revenue Bonds and 
approving the sale of Twenty-five Million Dollars ($25,000,000) of said additional Bonds (hereinafter 
referred to as the "Ordinances"), fixing the interest rate, specifying the maximum amount to be 
allocated each year to the Debt Service Reserve Account and Reserve Maintenance Account, and 
setting forth the amounts to be allocated in each fiscal year to the Sinking Fund Account for the 
Twenty-five Million Dollars ($25,000,000) additional Bonds designated as Series A of 1961. 

2. The City further represents and warrants to the Underwriters that at the time of the execu- 
tion of this Purchase Contract there is no litigation which is pending against the City in any court 
at the time of the execution of this Purchase Contract relating in any way to the Bonds, Ordinances 
or any Ordinance supplemental thereto, this Purchase Contract, the Leases and Agreements entered 
into between the City and certain Air Transportation Companies authorized by the City Council 
at its meeting held December 29, 1958, and as itemized and set forth in the Official Statement oi 
the City approved by the City Council and as set forth in the minutes of the meeting of the City 
Council held February 16, 1959, and the City agrees to advise the Underwriters promptly of 
any such litigation instituted after the signing of this Purchase Contract. 

3. On the basis of the representations and warranties herein contained, and subject to the terms 
and conditions set forth in this Purchase Contract, the City agrees to sell to the Underwriters and 
the Underwriters agree jointly and severally to purchase from the City all (but not less than all) 
of the Twenty-five Million Dollars ($25,000,000) Series A of 1961 Bonds at 103.30% of the principal 
amount thereof, plus interest accrued on the principal amount thereof at the coupon rate of four and 
three-quarters per cent (4%%) per annum from January 1, 1961 to date of delivery. 



February 1, 1961 REPORTS OP COMMITTEES 4359 

The Underwriters agree to make a bona fide public offering of all of the Bonds at not in excess 
of the initial public offering price, which shall be 104^% of the principal amount of the Bonds plus 
interest thereon from January 1, 1961 to the date of delivery. 

At or prior to the time of execution of the Purchase Contract by the City, the City shall have 
delivered to the Underwriters : 

(a) One copy of the Supplemental Ordinance certified under seal to have been duly 
adopted; and 

(b) One copy of the Official Statement of the City relating to the Bonds, in the form 
attached hereto and marked "Exhibit B", dated February 1, 1961 (which together with all 
exhibits, maps and reports or statements attached thereto or included therein is called herein 
the "Official Statement"), executed on behalf of the City by its Mayor as to the City's portion 
thereof, and including the execution by the proper persons and officials of the exhibits thereto. 

4. Payment for and delivery of the Bonds shall be made when the Bonds and delivery papers are 
ready, but in any event no later than the 15th day of March, 1961. Such payments shall be made at 
The First National Bank of Chicago, in the City of Chicago, Illinois. The hour and date of such 
delivery and payment is herein called "time of closing" and shall be determined by agreement 
between the City and the Underwriters within the period hereinabove stated. Payment for the Bonds 
upon delivery of the Bonds to the Underwriters or their order shall be made in Federal Reserve 
Funds to the order of the City Treasurer, City of Chicago, Illinois. 

5. Registered Bonds without coupons will be delivered initially only upon request by the Un- 
derwriters, delivered to the City not later than 4:00 o'clock P.M. on the tenth day preceding the 
time of closing, such request to specify the denominations of such Bonds and the names in which 
such Bonds are to be registered. 

The City agrees to make the Bonds available to the Managing Underwriter for inspection and 
packaging, at such places in Chicago, Illinois, as the City shall designate as rapidly as the Bonds 
are executed. 

6. The City acknowledges the deposit with it on behalf of the Underwriters of certified or bank 
cashier's check or checks to the order of the City Treasurer, City of Chicago, Illinois, aggregating 
Two Hundred Fifty Thousand Dollars ($250,000), as evidence of their good faith. If the Bonds shall 
be purchased by the Underwriters, as provided in paragraph 3 hereof, such check or checks shall be 
held uncashed by the City until the time of closing and shall be applied in partial payment of the 
purchase price of the Bonds. 

In the event the Underwriters fail to accept and pay for the Bonds at the time of closing, as 
herein provided, such check or checks shall be cashed by the City and the amounts retained by 
the City as full and liquidated damages for such failure and for any default hereunder on the part 
of the Underwriters. 

If the Purchase Contract be terminated pursuant to the provisions of Paragraph 7, the City shall 
forthwith return such check or checks to the Underwriters. 

7. The obligations of the Underwriters to purchase and pay for the Bonds shall be subject to 
the performance by the City of its obligations to be performed hereunder at and prior to the time 
of closing, to the continued accuracy in all material respects of the representations and warranties 
of the City contained herein and to the following conditions : 

(a) At the time of closing the Ordinances shall be in full force and effect and shall not 
have been amended, modified or supplemented, except as may have been agreed to in writing 
by the Underwriters, and in addition the City shall have duly adopted and there shall be in full 
force and effect such additional Ordinances as shall in the opinion of Bond Counsel for the 



4360 JOURNAL— CITY COUNCIL— CHICAGO February 1, 1961 

Underwriters, and for the City, be legally necessary in connection with the transactions con- 
templated hereby. 

(b) At the time of closing no litigation shall be pending in any court (i) restraining or 
enjoining the issuance or delivery of any of the Bonds or the collection of revenues pledged or 
to be pledged to pay the principal of and interest on the Bonds or restraining the Depositary 
in the performance of the duties and obligations imposed upon it, as Depositary, Paying Agent 
and Registration Agent, or (ii) in any way contesting or affecting validity of the Bonds or the 
Ordinances or of any additional Ordinances deemed necessary by Bond Counsel for the Under- 
writers and the City, of this Purchase Contract, of the Leases and Agreements referred to in 
paragraph 2 hereof, or of the collection of such Revenues or the pledge thereof, or (iii) contest- 
ing the corporate existence or the powers of the City or the authorization for the issuance of 
the Bonds, the adoption of the Ordinances or any Ordinances supplemental thereto, or the 
appointment of a Depositary. 

(c) At the time of closing no legislation shall have been passed by the Legislature of the 
State of Illinois at its 1961 Session, which in the opinion of Bond Counsel for the Underwriters 
or for the City, might adversely affect the City's ownership, maintenance or operation of the 
O'Hare Airport or the security of the Bonds. 

(d) At or prior to the time of closing the City shall have delivered to Bond Counsel for 
the Underwriters and Bond Counsel for the City all such documents, certificates and proofs or 
instruments as may be required in order that such Bond Counsel may form an opinion with 
respect to the validity and legal effect of the Bonds, the Ordinances and any Ordinances sup- 
plemental thereto, Leases and Agreements, referred to in paragraph 2 hereof, and with respect 
to the compliance of the City with the terms of this Purchase Contract. 

(e) At the time of closing the Underwriters shall have received: 

(1) The unqualified approving opinion of Messrs. Chapman and Cutler, Bond Counsel 
for the City, dated as of the date of closing. 

(2) The unqualified approving opinion of Messrs. Wood, King, Dawson & Logan, Bond 
Counsel for the Underwriters, dated as of the date of closing. 

(3) Certificate of the Corporation Counsel, and City Clerk, that the Airport Use Agree- 
ment and Leases, referred to in paragraph 2 hereof have not been rescinded, supplemented 
or otherwise modified in any material respect and that they are still in effect in accordance 
with their original terms. 

(4) A certificate by the Corporation Counsel of the City, dated as of the date of 
closing, to the effect that after due and diligent inquiry that no litigation is pending and 
to the best of his knowledge and belief none is seriously threatened in any court (a) re- 
straining or enjoining the issuance or delivery of any of the Bonds or the collection of 
Revenues pledged or to be pledged to pay the principal of and interest on the Bonds, or 
restraining or enjoining the Depositary in the performance of the duties and obligations 
imposed upon it as Depositary, Paying Agent and Registration Agent, (b) in any way 
contesting or affecting the validity of the Bonds, of the Ordinances, or any Ordinance 
supplemental thereto, of this Purchase Contract, of the Leases and Agreements referred 
to in paragraph 2 hereof, or the collection of such revenues or the pledge thereof, or 
(c) contesting the corporate existence or the powers of the City or the authorization for the 
issuance of the Bonds, the adoption of the Ordinances, or any Ordinances supplemental 
thereto, or the appointment of the Depositary, which certificate shall be in the form and 
substance acceptable to the Underwriters. 

In case any of the conditions specified in this paragraph 7 shall not have been fulfilled, as 
herein provided, the Underwriters may terminate this Purchase Contract upon notice to the City. 



February 1, 1961 REPORTS OF COMMITTEES 4361 

The Underwriters may also terminate this Purchase Contract upon notice to the City if at any 
time or at the time of closing a decision by a Court of the United States or the Tax Court of the 
United States shall be rendered, or a ruling, regulation or official statement by or on behalf of the 
Treasury Department of the United States, the Internal Revenue Service or other governmental 
agency shall be made with respect to federal taxation upon Revenues or other income of the general 
character expected to be derived by the City from the operation of Chicago-O'Hare International 
Airport or upon interest received on bonds* of the general character of the Bonds which in the 
opinion of the Underwriters materially and adversely affects the market price of the Bonds. 

8. The Underwriters shall be under no obligation to pay expenses incident to the performance 
of the City's obligations hereunder including, but not limited to, fees of the City payable to Architects, 
Engineers, the Airport Consultant, to Chapman and Cutler, or of any other consultant not retained 
directly by the Underwriters, or disbursements made by them on behalf of the City, or the cost of 
preparation, execution or delivery of the Bonds, copies of the proposed Official Statement, the Ordi- 
nances and any ordinance supplemental thereto, the Engineering Report, the Traffic and Earnings 
Report, or any exhibits. The Underwriters will pay all expenses incurred by them in connection with 
their offering or distribution of the Bonds, including the fees and disbursements of Wood, King, 
Dawson & Logan and the cost of printing the final copies of the Official Statement and this Purchase 
Contract. 

9. Any notice or communication to be given to the City under this Purchase Contract may be 
given by delivering the same in writing to the City Comptroller, Room 504, City Hall, Chicago 2, 
Illinois, and any notice or other communication to be given to the Underwriters under this Pur- 
chase Contract may be given by delivering the same in writing to Glore, Forgan & Co., 135 South 
LaSalle Street, Chicago, Illinois. 

Glore, Forgan & Co., Manager 
A. C. Allyn and Company, Incorporated 
Halsey, Stuart & Co. Inc. 
Harriman Ripley & Co., Incorporated 
Hayden, Stone & Co. 

Stifel, Nicolaus & Company, Incorporated 
Co-Managers 



By.., 



Glore, Forgan & Co. 



Accepted and agreed to by authority granted by 
the City Council of the City of Chicago, Cook 
County, Illinois, pursuant to an Ordinance adopted 
at a legally convened meeting of the City Council 
on the 1st day of February, 1961. 



Mayor 



City Clerk 
(SEAL) 



JOURNAL—CITY COUNCIL—CHICAGO 



February 1, 1961 



be and is hereby approved, and the Mayor is authorized to execute the contract for the sale of said 
Series A of 1961 Bonds for and on behalf of the City, and the City Clerk is hereby authorized to 
attest thereto his signature and the seal of the City. 

Section 8. The form of the Official Statement dated February 1, 1961, of the City relating to 
the Series A of 1961 Bonds, in the form attached to the Purchase Contract referred to in Section 7 
hereof and marked Exhibit B, which Official Statement is now before the City Council, is hereby 
approved, and the Mayor is hereby authorized in the name of and for and on behalf of the City to 
execute and deliver the same. 

Section 9. Subject to and in compliance with Sections 2.15 and 5.03 of the Ordinance, com- 
mencing January 1, 1962, the City Comptroller shall, from time to time, direct the Depositary to 
allocate to the Debt Service Reserve Account, all available Revenues after having allocated the 
required amounts to Operation and Maintenance Expenses and the Interest Account for each fiscal 
year until there shall have been allocated to the Debt Service Reserve Account, in addition to the 
allocation provided to be made for Bonds heretofore issued under Section 2.02 of the Ordinance, an 
amount equal to two years interest requirements on the Bonds, Series A of 1961 ; provided, however, 
the maximum allocated to the Debt Service Reserve Account, with respect to the Bonds of Series A 
of 1961 in any fiscal year shall not exceed the sum of Six Hundred Eighty-three Thousand Seven 
Hundred Fifty Dollars ($683,750). 

Section 10. Stfoject to and in compliance with the provisions of Sections 2.15 and 5.03 of the 
Ordinance, the City Comptroller shall from time to time direct the Depositary to allocate Revenue 
to the Sinking Fund Account in each fiscal year, beginning with the fiscal year 1965, in such amounts 
(in addition to amounts heretofore required to be so allocated to said Account for the retirement of 
Bonds heretofore issued under Section 2.02 of the Ordinance), until there shall have been allocated to 
the Sinking Fund Account in such fiscal year an amount sufficient to retire a principal amount of 
Series A of 1961 Bonds by January 1 of the succeeding fiscal year, in accordance with the following 
schedule : 



Fiscal 


Principal Amount of 


Fiscal 


Principal Amount of 


Year 


Bonds to be Retired 


Year 


Bonds to be Retired 


1965 


$ 309,000 


1982 


$ 680,000 


1966 


324,000 


1983 


712,000 


1967 


339,000 


1984 


746,000 


1968 


355,000 


1985 


781,000 


1969 


372,000 


1986 


819,000 


1970 


390,000 


1987 


857,000 


1971 


408,000 


1988 


898,000 


1972 


427,000 


1989 


941,000 


1973 


448,000 


1990 


985,000 


1974 


469,000 


1991 


1,032,000 


1975 


491,000 


1992 


1,081,000 


1976 


515,000 


1993 


1,133,000 


1977 


539,000 


1994 


1,186,000 


1978 


565,000 


1995 


1,243,000 


1979 


592,000 


1996 


1,302,000 


1980 


620,000 


1997 


1,364,000 


1981 


649,000 


1998 


1,428,000 



Section 11. Subject to and in compliance with the provisions of Sections 2.15 and 5.03 of the 
Ordinance, the allocations to the Reserve Maintenance Account in each fiscal year after December 31, 
1961, shall be increased from Six Hundred Thousand Dollars ($600,000) to Seven Hundred Twenty- 
five Thousand Dollars ($725,000). The City Comptroller shall from time to time direct the Depositary 



February 1, 1961 REPORTS OF COMMITTEES 4363 

to make such allocations. The limit as to the amount which may be accumulated in said Account 
shall be increased from Two Million Five Hundred Thousand Dollars ($2,500,000) to Three Million 
Twenty Thousand Eight Hundred and Thirty-three and 33/100 Dollars ($3,020,833.33). 

Section 12. There is hereby ordered and directed to be executed the Series A of 1961 Bonds in 
the aggregate principal amount of Twenty-five Million Dollars ($25,000,000) as authorized by this 
Supplemental Ordinance. 

Section 13. When the aforesaid Purchase Contract shall have been executed and delivered, the 
City Comptroller is hereby ordered and directed to deliver the Series A of 1961 Bonds to or upon the 
order of Glore, Forgan & Co., Manager, upon payment of the purchase price, including accrued 
interest, to the City Treasurer, in accordance with the terms of said Purchase Contract. 

Section 14. The Mayor, City Comptroller, Corporation Counsel, City Treasurer, Commissioner 
of Public Works, Commissioner of Aviation, and City Clerk, be and are hereby authorized and em- 
powered, for and on behalf of the City, to execute and deliver any and all other documents, papers 
or instruments, and to do or cause to be done all such acts and things that they may deem necessary 
or desirable in connection with said Purchase Contract, the Series A of 1961 Bonds, the Ordinance 
or this Supplemental Ordinance. 

Section 15. The Series B of 1961 Bonds shall bear interest at such rate not exceeding an 
interest cost of six per cent (6%) as authorized by law. Interest on the Series B of 1961 Bonds 
shall be payable on January 1 or July 1 next succeeding the date of execution and delivery of any 
of said Series B of 1961 Bonds and semiannually thereafter on January 1 and July 1 of each year, 
and said Series B of 1961 Bonds shall mature and become payable on January 1, 1999. The rate or 
rates of interest the Series B of 1961 Bonds shall bear and the redemption premiums applicable to 
the redemption of said Bonds shall be fixed by a Supplemental Ordinance approving the sale of 
said Bonds, and in compliance with Sections 2.15 and 5.03 of the Ordinance, the City Comptroller 
shall direct the Depositary from time to time to allocate to the Debt Service Reserve Account and 
to the Sinking Fund Account and the Reserve Maintenance Account, the required amounts in com- 
pliance with Sections 2.15 and 5.03 of the Ordinance. A copy of said Supplemental Ordinance 
approving the sale and fixing the details of the Series B of 1961 Bonds, as herein provided, duly 
certified as having been adopted by the City Council, shall be filed with the City Comptroller and 
the Depositary. 

Coupon Series B of 1961 Bonds shall be in the denomination of $1,000 each, be numbered con- 
secutively from M-145,001 upwards, and be dated the January 1 or July 1 next preceding the date 
of execution and delivery of said Bonds, or if executed and delivered on January 1 or July 1, shall 
be dated the date of execution and delivery. 

Registered Series B of 1961 Bonds shall be numbered RB-1 upwards and all Series B of 1961 
Bonds shall be issued in the form provided in the Ordinance, with appropriate changes in the title, 
date of issue, initial interest payment date and redemption provisions, with appropriate references 
to this Supplemental Ordinance, to comply with the provisions hereof, and the interest coupons 
attached to Coupon Series B of 1961 Bonds shall be in the form provided for in the Ordinance, with 
appropriate changes to comply with the provisions hereof. 

Section 16. After the sale of the Series A of 1961 Bonds, the Series B of 1961 Bonds shall be 
sold at such time or times and in such principal amounts as the City Council shall hereafter determine 
and direct to be necessary to provide funds sufficient to pay the cost of completing the Improvements, 
other than hangars, and upon receipt of an offer or offers to purchase such principal amounts of said 
Series B of 1961 Bonds so directed to be sold, the City Council shall approve the sale or the sales 
thereof by Supplemental Ordinance. Before delivery of such Series B of 1961 Bonds to any purchaser 
there shall be filed with the Depositary and the Comptroller of the City a certificate signed by the 
Consulting Engineer, dated after the date of issuance of the Series A of 1961 Bonds, stating that 



4364 JOURNAL— CITY COUNCIL— CHICAGO February 1, 1961 

in the opinion of the signers the proceeds of such Series B of 1961 Bonds will provide such funds 
as are necessary for the construction of the Improvements, other than hangars. Any portion of the 
Ten Million Dollars ($10,000,000) principal amount of Series B of 1961 Bonds authorized by this 
Supplemental Ordinance which is not required to be sold in accordance with the foregoing shall 
not thereafter be issued or sold and the authorization of such portion under this Supplemental Ordi- 
nance shall be deemed cancelled. 

Section 17. The Bonds (1961 Issue) may be initially issued in temporary or definitive form, 
pursuant to the provisions of Section 2.14 of the Ordinance. 

Both the principal of and interest on The Bonds (1961 Issue), as well as any premium thereon 
on the redemption thereof prior to maturity, shall be payable in lawful money of the United States 
of America at the office of the City Treasurer, Chicago, Illinois, or at the holder's option at the office 
of the Depositary in the City of Chicago, Illinois. Such principal, interest and premium, if any, shall 
also be payable at the principal office of the Fiscal Agent of the City of Chicago in the Borough of 
Manhattan in the City of New York, State of New York. 

Section 18. The proceeds received by the City from the sale of The Bonds (1961 Issue) shall be 
deposited with the Depositary in trust and credited to the separate fund heretofore created in Section 
3.01 of the Ordinance and known as "Chicago-O'Hare International Airport Construction Fund" in 
the "General Construction Account", except that there shall be first set aside in the Construction Fund 
in a separate account heretofore created under said Section 3.01 of the Ordinance and designated as 
the "Interest During Construction Account" an amount of the proceeds derived from the sale of any 
of The Bonds (1961 Issue) as shall be issued prior to January 1, 1962, as will be sufficient to pay the 
interest which will accrue and become payable on such Bonds up to and including January 1, 1962, 
and the amounts so set aside shall be used to pay such interest. 

Section 19. This Supplemental Ordinance shall be in full force and effect immediately upon its 
passage and publication as provided by law. 



February 1, 1961 REPORTS OF COMMITTEES 4365 

$25,000,000 EXHIBIT B 

City of Chicago 
Chicago-O'Hare International Airport 
4%% Revenue Bonds, Series A of 1961 

Dated January 1, 1961 Due January 1, 1999 

Principal and semi-annual interest (January 1 and July 1, first coupon July 1, 1961) payable at the office of the City 
Treasurer or at The First National Bank of Chicago, in Chicago, Illinois or at the principal office of the Fiscal Agent of 
the City of Chicago in New York, New York. Coupon bonds in the denomination of $1000 registrable as to principal only ; 
fully registered bonds in the denomination of $25,000 or more; coupon bonds and registered bonds interchangeable at the 
office of the Registration Agent in the City of Chicago, Illinois, as provided in the Ordinance. 

Redeemable prior to maturity, at the option of the City, on 30 days' published notice, in whole, on any date not earlier 
than January 1, 1974 from any funds other than revenues, or in whole or in part by lot on any interest payment date not 
earlier than January 1, 1965, through the use of revenues, at the following prices plus accrued interest to the date of 
redemption. 

Redemption Price 

(Percentage of Principal Amount) 
Period of Redemption From Revenues Otherwise 

January 1, 1965 to and including December 31, 1968 104^4% Non-Redeemable 

January 1, 1969 to and including December 31, 1973 \0A%,% Non-Redeemable 

January 1, 1974 to and including December 31, 1977 10324% 10424% 

January 1, 1978 to and including December 31, 1980 103 % 104 % 

January 1, 1981 to and including December 31, 1983 102 % 103 % 

January 1, 1984 to and including December 31, 1986 101 % 102 % 

January 1, 1987 to and including December 31, 1989 100^% 100^% 

January 1, 1990 and thereafter 100 % 100 % 

Interest exempt, in the opinion of Counsel, from all present Federal Income Taxes. 

The City of Chicago is authorized by Sections 22-3 through 22-12 of Article 22 of Chapter 24, Illinois Revised Statutes, 
1959, as amended, to establish, maintain, operate, purchase, construct, reconstruct, expand and 'improve public airports and 
issue revenue bonds to finance the cost thereof. These Bonds, Series A of 1961, authorized together with the unissued 
$10,000,000 Bonds, Series B of 1961, to pay the additional costs of completing the Improvements (as hereinafter described) 
to Chicago-O'Hare International Airport, are issued in accordance with said Statutes and under and secured by the 
provisions of an Ordinance adopted by the City Council of the City of Chicago on December 29, 1958 and naming The First 
National Bank of Chicago, Chicago, Illinois, Depositary, Paying Agent and Registration Agent and pursuant to the 
authority of a Supplemental Ordinance adopted by said City Council on February 1, 1961. 

These Bonds rank on a parity with the outstanding 4J4% Revenue Bonds, Series of 1959 and are to be payable solely 
from and secured by a pledge of the bond proceeds and the net revenues derived from the operation of Chicago-O'Hare 
International Airport, as provided in the Ordinance, such net revenues and funds being exclusively and irrevocably pledged 
to and constituting a trust fund for the security and payment of the Bonds and the interest thereon. The Ordinance 
provides for the issuance of additional bonds under conditions and limitations as referred to therein. 

These Bonds are not a general obligation of the City of Chicago or of the State of Illinois and neither the faith and 
credit nor the taxing power of the City of Chicago or the State of Illinois are pledged to the payment of the principal of 
or interest on the Bonds. 

Under the provisions of the authorizing Statutes, the Bonds have all the qualities of negotiable instruments under the 
laws of the State of Illinois but may be registered as to principal or as to principal and interest. 

Price 104V2 and Interest 

These Bonds are offered at the above initial offering price, when, as and if issued and received by us, subject to the un- 
qualified approving legal opinions of Chapman and Cutler of Chicago, Bond Counsel to the City, and Wood, King, Dawson 
& Logan of New York City, Bond Counsel to the Underwriters. It is expected that Bonds will be delivered in definitive form. 



This Official Statement does not constitute an offer to sell Bonds in any State to any person to whom it is unlawful to 
make such offer in si/ch State. No dealer, salesman or any other person has been authorized to give any information or 
make any representation, other than those contained herein, in connection with the offering of these Bonds, and if given or 
made, such information or representation must not be relied upon. 
February 1. 1961. 



4366 JOURNAL— CITY COUNCIL— CHICAGO February 1, 1961 

TABLE OF CONTENTS 

Page 

Salient Features Regarding Security of the Bonds 3 

The City and Its Powers 4 

Economy of Chicago Area 4 

Existing Chicago Airports 4 

Reports of Engineers 5 

Authorization of Outstanding. Bonds, Series of 1959 6 

Growth of Traffic at O'Hare Airport 6 

Description of Facilities included in First Stage of Development 6 

Terminal Area 6 

Hangar Area 8 

Cargo Area , 8 

Fueling System 8 

Runways and Taxiways 8 

Utilities 8 

Storm Drainage Improvements 9 

Airport Maintenance Building 9 

Other Improvements 9 

General Status of Construction of First Stage of Development 9 

Revised Project Cost and Estimated Date of Completion 10 

Purpose of Issue 11 

Authorization of Bonds, Series A and B of 1961 11 

Summary of Covenants of Airport Use Agreement and Leases 12 

Airport Use Agreement 12 

Hangar and Hangar Site Lease 14 

Lease of Terminal Facilities 15 

Cargo Building and Site Lease 16 

Joint Cargo Building and Site Lease 16 

Fueling System Lease 17 

Summary of General Covenants Applicable to Airport Use Agreement and Leases 18 

Sources of Estimated Annual Gross Revenue 21 

Estimated Revenues and Operation and Maintenance Expenses 21 

Estimated Coverage of Debt Service 22 

Estimated Retirement of Bonds 23 

Summary of Certain Provisions of Bond Ordinance 23 

Security for the Bonds 23 

Surety Bonds 23 

Receipt, Deposit and Allocation of Revenues , 23 

Security for Deposits 26 

Investment of Revenues 26 

Custody and Application of Proceeds of Bonds 26 

Purchase and Redemption of Bonds 28 

Covenants as to Rents, Fees, Rates and Other Charges 29 

Additional Bonds 29 

Other Covenants 31 

Rights of Bondholders 33 

Modification and Amendment of the Ordinance 33 

Exemption from Taxation 34 

Approval of Legal Proceedings 34 

Miscellaneous 34 

Summary Report of Naess & Murphy, Architects-Engineers 35 

Summary Report of Landrum and Brown, Airport Consultants 41 



February 1, 1961 , REPORTS OF COMMITTEES 436 

RICHARD J. DALEY 

CITY OF CHICAGO 

OFFICE OF THE MAYOR 

February 1, 1961 
Glore, Forgan & Co. 
A. C. Allyn and Company, Incorporated 
Halsey, Stuart & Co. Inc. 
Harriman Ripley & Co., Incorporated 
Hayden, Stone & Co. 
Stifel, Nicolaus & Company, Incorporated 

Dear Sirs: 

With reference to the $25,000,000 City of Chicago, Chicago-O'Hare International Airport Revenue 
Bonds, Series A of 1961, dated January 1, 1961, and due January 1, 1999 (herein called the "Bonds, 
Series A of 1961") and the $10,000,000 Revenue Bond, Series B of 1961 (herein called the "Bonds, 
Series B of 1961") authorized to pay additional costs of the Improvements (as hereinafter described), 
this Official Statement, including its cover page, has been prepared by the City of Chicago, Illinois 
(herein called the "City") to set forth the general powers of the City under the authorizing statutes, 
a description of the Improvements being made to Chicago-O'Hare International Airport (herein called the 
"Airport"), the plan for financing and constructing said Improvements, a summary of provisions of 
the Airport Use Agreement and the various Leases entered into by and between the City and certain 
Airlines, a description of the Bonds, Series A of 1961, and the provisions of the Ordinance and Supple- 
mental Ordinance under which the Bonds, Series A of 1961, will be issued and secured. All bonds issued 
under the Ordinance are herein called the "Bonds." 

SALIENT FEATURES REGARDING SECURITY OF THE BONDS 

The following are the salient features regarding the security of the Bonds, the details of which 
are set forth in full in the Ordinance and in the Airport Use Agreement and the various Leases between 
the City and the Airlines : 

The City has executed an Airport Use Agreement and Leases for the various facilities included in 
the first stage of development of O'Hare Airport with the respective Airlines shown in the schedule on 
page 12 which, upon delivery of the Bonds, Series of 1959, by the City, became effective as of 
January 1, 1959 for a term of 40 years. 

The Airlines executing the Airport Use Agreement covenant to use O'Hare Airport and to pay 
in each fiscal year flight fees for the fee landings of their aircraft at such Airport, which flight fees, 
together with revenues derived from all other sources will produce gross revenues for such fiscal 
year equal to the sum of operation and maintenance expenses, the amounts to be allocated to certain 
reserves and, beginning in the fiscal year 1962, an amount equal to 1.25 times the Principal and 
Interest Requirements, as defined in the Ordinance, on the Approved Revenue Bonds outstanding at 
the beginning of such fiscal year, and the amount of any premiums paid on such Bonds retired by 
January 1 of the succeeding fiscal year. 

If the flight fee rate in effect during any fiscal year does not produce gross revenues, together with 
those from other sources, equal to the sum stated in the preceding paragraph, each Airline executing 
the Airport Use Agreement agrees to pay its pro rata share of such deficiency. 

The City covenants in the Ordinance that it will fix and place in effect rents, fees, rates and other 
charges for the use of the Airport and its services that will produce revenues in each fiscal year suffi- 
cient to pay operation and maintenance expenses, make the required deposits to certain reserve 
accounts and, beginning with the fiscal year 1962, cover Principal and Interest Requirements on 
the Approved Revenue Bonds outstanding at the beginning of such fiscal year 1.25 times and pay 
any premiums on such Bonds retired by January 1 of the succeeding fiscal year. 

The City further covenants, that so long as any Bonds are outstanding, it will not amend any Lease 
or Airport Use Agreement in effect upon the issuance of the Bonds, Series of 1959, so as to reduce 



368 JOURNAL— CITY COUNCIL— CHICAGO February 1, 1961 

the amount of fixed rentals, or the revenues which would otherwise be received from the application 
of the Flight Fee formula or the Flight Fee deficiency formula, below those provided under such Lease 
or Agreement. 

THE CITY AND ITS POWERS 

The City of Chicago, a municipal corporation, is authorized by Sections 22-3 through 22-12 of Article 
22 of Chapter 24, Illinois Revised Statutes, 1959, as amended (hereinafter referred to as the "Act") to 
establish, purchase, construct, reconstruct, expand, improve, maintain and operate public airports. 

The Act provides for financing the cost of constructing, improving or expanding a public airport by 
ordinance authorizing the issuance of revenue bonds of a municipality payable solely from and secured by a 
pledge of the bond proceeds and the net revenues derived from the operation of the airport. The Act states 
that any bonds so issued by a municipality shall not constitute a general obligation of such municipality. 

The Act further authorizes a municipality to contract to fix and collect rents, rates and other charges 
sufficient to produce revenues adequate to pay the costs of maintenance and operation of such airport, the 
principal of and interest on the bonds issued in connection with such airport as the same shall become due 
and payable, and to create reserves for such purposes. 

A municipality is further authorized under the Act to contract for removal or relocation of all buildings, 
railways, mains, wires, poles and all other structures, facilities and equipment which may interfere with the 
location, expansion or improvement of any public airport, or with the safe approach thereto or take off 
therefrom and to acquire by gift, grant, lease, purchase, condemnation or otherwise any private or public 
property for any purpose authorized therein. 

ECONOMY OF CHICAGO AREA 

Chicago and its metropolitan area, wth a 1960 population of 6,220,913, has the third largest con- 
centration of people in the United States. The area continues to show a rapid growth in population, 
having increased about 11.1% in the ten year period from 1950 to 1960. Chicago, by virtue of its geo- 
graphic location, is one of the world's leading centers of air, water and land transportation and is the 
industrial, commercial, financial and service center for the Midwest area. Development of long-range 
commercial aviation and direct shipments by water via the Great Lakes and the St. Lawrence Seaway to 
other world ports have opened new horizons for Chicago in the world's markets. The City is served by 
twenty-one scheduled airlines affording complete interchange of traffic with the twenty-two trunk line 
railways and the vast network of highways, tollways and waterways linking the City and its metropoli- 
tan area with the surrounding country. The City is unsurpassed in the diversity of its products, and the 
stability of its economy keeps unemployment low and makes the general level of income among the high- 
est in the nation. 

EXISTING CHICAGO AIRPORTS 

The City of Chicago operates three Airports, namely: Meigs Field, Midway Airport and O'Hare 
Airport. The Commissioner of Public Works is responsible for major construction at the Airports and the 
Commissioner of Aviation is responsible for their maintenance and operation. 

Meigs Field 

This airport, located on a seventy acre island off the shore of Lake Michigan southeast of Chicago's 
downtown area, has only one runway which is approximately 3,945 feet in length and is used primarily 
by privately owned aircraft. Helicopter service is available at Meigs Field for connection with Midway or 
O'Hare Airports. 

Midway Airport 

This airport, located southwest of Chicago's downtown area, consists of approximately 630 acres, and 
has seven runways, the longest of which is 5,730 feet between threshold lights. Midway is the world's 
busiest airport, 10,040,353 passengers having arrived at or departed from the airport in the year 1959. 
In 1959 there were 345,170 air carrier operations at Midway. The next busiest airport was Washington 
National Airport in Washington, D. C. with 249,414 operations. Midway, because of its location in a con- 
gested area of the City and its being completely surrounded by residential and industrial developments, 
cannot economically be expanded. 



February 1, 1961 REPORTS OF COMMITTEES 4369 

O'Hare Airport 

This Airport is located northwest of the City's downtown area at the terminus of the Northwest Ex- 
pressway and the junction of the Tri-State and Northwest Tollways. The Northwest Expr. .sway, completed 
in the fall of 1960, provides O'Hare Airport passengers with a high-speed, limited access highway into 
the heart of the City, while the Tollways and highways radiating from the Airport provide the surrounding 
metropolitan area with access to the Airport via a vast network of excellent highways. 

The Airport was acquired from the War Assets Administration of the United States Government on 
March 21, 1946, at which time it covered a tract of 1,080 acres. In 1958, the City obtained clear title to 
the land when the Government released the right to use the Airport that it had reserved under the deed 
of March 21, 1946, and entered into a lease with the City, under the terms of which the City granted the 
Government the limited use, in common with others, of the Airport's public facilities, as for example, the 
runways and taxiways, for a period of twenty-five years, without cost. The Government also has the 
option of extending the lease for an additional twenty-five years or terminating the lease at any time upon 
proper notice. Under the lease, the Government agrees to pay the City for all military operations, in 
excess of the limited number of free operations specified in the lease, at the rates then prevailing for 
scheduled Airlines. 

Since the City acquired the Airport from the Government in 1946, additional City, State and Federal 
funds have been invested in land acquisition and improvements which amount to a net investment of 
$36,841,658 as of September 30, 1960, exclusive of the proceeds of the $120,000,000 Revenue Bonds, 
Series of 1959. The Airport limits as defined by the City Council include approximately 6,000 acres of 
which all but a few parcels have been acquired at this time. The City expects to acquire these few remain- 
ing parcels in the near future, none of which are needed for the presently contemplated improvements 
and extensions at the Airport. 

In May, 1955, the City negotiated agreements with seventeen Airlines covering their use of the air- 
port and the fees to be paid by them. The City Council -approved these agreements of October of that 
year and the Airport was opened for commercial use. These agreements were superseded by the various 
Leases and the Agreement referred to on page 12 of this Official Statement. 

The present facilities at O'Hare Airport include a two-story terminal facility and concourse building 
with a restaurant and other passenger facilities, control tower, heating plant, automobile parking lot, 
taxiways, aircraft parking aprons, water system and reservoir, and five runways of the following length: 
11,600 feet, 7,417 feet, 7,345 feet, 5,760 feet and 5,500 feet. The 11,600 foot runway was completed in 
the summer of 1960, after being strengthened by a concrete overlay and extended from its original length 
of 8,000 feet. This work was financed from City, State and Federal funds. This 11,600 foot runway can 
now accommodate the largest jet aircraft for their longest international flights. 

REPORTS OF ENGINEERS 

As Midway Airport was operating at its maximum practical traffic capacity and the Airlines were 
beginning to make substantial commitments for large jet aircraft which could not be accommodated at 
Midway due to the limitations of its runways, the City was faced with the immediate necessity of further 
development of O'Hare Airport. On March 1, 1957 the City employed Naess & Murphy, Architects- 
Engineers, to review and revise previous plans for O'Hare Airport development, in view of the Airlines' 
commitments for jet aircraft scheduled for delivery in 1958 and in ever-increasing numbers beginning 
in January, 1959. In October of 1957, the City employed Coverdale & Colpitts, Consulting Engineers 
of New York City, to prepare a study of Chicago's air traffic and make estimates of the annual revenues 
and expenses that could be expected at O'Hare Airport. 

Naess & Murphy, together with their consultants, Landrum and Brown, Airport Consultants of Cin- 
cinnati, Ohio, and James P. O'Donnell, Fueling Consultant of New York City, carried forward their work 
in close cooperation with the Bureau of Aviation of the City, the Technical Development Center of the 
Civil Aeronautics Administration and the Airline Technical Committee. After considering several differ- 
ent plans for the development of O'Hare Airport, agreement was reached in March, 1958, on a new plan 
considered adequate to meet estimated traffic requirements for the year 1965 and formal approval was 
indicated by the City and the Airline Top Committee. This plan was presented in its final form in the 
Engineering Report of Naess & Murphy dated November 14, 1958. 

Coverdale and Colpitts, working in close cooperation with the Bureau of Aviation, Naess & Murphy 
and the Airline Top Committee, prepared their Traffic and Revenue report, dated December 22, 1958, con- 



4370 JOURNAL— CITY COUNCIL— CHICAGO February 1, 1961 

taining their estimates as to the traffic and revenue to be expected at O'Hare Airport based on the final 
approved plan. 

AUTHORIZATION OF OUTSTANDING BONDS 
Series of 1959 

After giving careful consideration to the conclusions reached in the Engineering Report of Naess & 
Murphy, Architects-Engineers and the Traffic and Revenue Report of Coverdale & Colpitis, Consulting 
Engineers, and in accordance with the powers granted to it under the Act, the City Council, by Ordinance 
adopted December 29, 1958, authorized the issuance of $120,000,000 Chicago-O'Hare International Air- 
port Revenue Bonds, Series of 1959 to finance the construction of the first stage of development of 
Chicago-O'Hare International Airport. The proceeds from the sale of these Bonds were received by the 
City on March 2, 1959. 

GROWTH OF TRAFFIC AT O'HARE AIRPORT 

The U. S. Department of Commerce records reveal that in the period 1950-1959 Chicago's enplaned 
domestic passengers increased from 1,437,416 to 4,535,047, an increase of 215% compared to the Nation's 
increase in the same period of 191%, while the aircraft departures from Chicago increased from 76,695 
to 166,620 an increase of 117%. 

The City's records show that the number of enplaned passengers at O'Hare Airport increased from 
293,320 in 1956 to 865,380 in 1959 and to 2,422,701 in 1960. It is estimated that the number of enplaned 
passengers will approximate 3,200,300 in 1961 and 5,276,500 in the year 1965. 

The main trunk Airlines have acquired substantial numbers of new turbo jet aircraft. These large 
aircraft cannot operate at Midway Airport because of the limitations of the runways. Of necessity these 
aircraft have to use O'Hare Airport with its longer and wider runways. 

City of Chicago records indicate that American, Capital, Delta, Eastern, Trans World and United 
Airlines carry more than 80% of Chicago's air passengers. All of these carriers have acquired or made 
commitments for turbo jet type planes and plan further substantial scheduling of jet flights at O'Hare 
Airport. The first of these flights began in 1959. 

With the main trunk Airlines operating new turbo jet aircraft of greatly increased passenger capacity 
at O'Hare Airport, the feeder lines are beginning to inaugurate substantial supporting schedules at O'Hare 
Airport to interconnect with these main trunk line flights. 

DESCRIPTION OF FACILITIES INCLUDED 

IN FIRST STAGE OF DEVELOPMENT 

AND STATUS OF CONSTRUCTION 

The first stage development program for O'Hare Airport is designed to provide Chicago with greatly 
expanded airport facilities which will accommodate the new commercial jet airliners and the increased 
volume of passengers which they are expected to carry. The facilities in the first stage of development 
are considered adequate to handle the expected volume of traffic in the year 1965. The facilities included 
in this development are as follows : 

TERMINAL AREA 
Terminal Buildings 

It is planned to increase terminal facilities with the addition of two terminal buildings with attendant 
concourses and concrete aprons for parking aircraft. They will be rectangular buildings approximately 
140 feet in width and 750 feet in length, consisting of two full floors, a mezzanine floor, and a partial 
basement. General separation of inbound and outbound passengers is obtained by concentrating items 
relating to each on separate floors. The second floor will have the airline ticket counters, offices, waiting 
areas and general concessions such as a general merchandise store, newsstand, lunch counters and insur- 
ance counters. The outbound passengers will arrive at the terminal building on the second floor via an 
elevated roadway. They may proceed past the ticket counters and board the aircraft by means of loading 
bridges without leaving this level. The first floor will be devoted to baggage handling areas, concessions 
such as taxi offices, hotel reservations, rent-a-car agencies, telegraph counters and other services. The 



February 1, 1961 REPORTS OF COMMITTEES 4371 

inbound passengers will also come from the aircraft at the second floor level, but will descend to the 
first floor via escalators to claim their baggage and obtain ground transportation from the terminal. 

The Mezzanine floor will accommodate airline offices, rental offices, and airport administrative offices. 
The partial basement will provide storage space, meter rooms and areas for mechanical equipment. All 
areas except baggage handling and mechanical equipment areas will be air conditioned. A public address 
system will also be provided. 

It is planned to alter the present terminal building for use by International air carriers and govern- 
ment inspection agencies. 

Foundations and basements of the domestic terminals have been completed. A contract for the 
superstructure is now 20% completed and is proceeding rapidly under an accelerated program. Precast 
concrete panels enclosing the lower level are now being installed and the roof is being erected on both 
terminals. Construction is being carried on simultaneously in the two terminals with completion scheduled 
in November 1961 to allow tenant work to be completed before the end of the year. 

Concourses 

There will be a total of four two-story concourses projected from the two terminal buildings with 
adjacent concrete aprons providing space for parking sixty aircraft. Two of these concourses will be 
straight and two will be so-called split "Y" units. They will consist of an elevated passenger corridor 
20 feet wide with small passenger waiting lobbies on either side of the corridor at each airplane "gate" 
position. This level corresponds to the second floor of the terminal building. The first floor level will 
contain airline operations rooms and departure rooms for those carriers which prefer not to load pas- 
sengers from the second floor level with loading bridges. In the center of the split "Y" concourses will be 
two floors of additional airline operations spaces with an additional enclosed observation area on the roof 
which will overlook an open observation deck. Utility tunnels 20 feet wide extend the full length of all 
concourses at basement level. 

Utility tunnels and the foundations of the concourses have been completed. Precast concrete wall 
panels and the glass departure room walls are being installed in the split "Y" concourses. Concrete 
columns and slabs are being erected for the other fingers. 

Restaurant 

The main restaurant will be a large circular building located between and connecting with the two 
new terminal buildings. The basement will house utilities and employees locker rooms. The first floor 
will accommodate the main central kitchen, storage and an employees cafeteria. The second floor will 
be devoted to a large coffee shop. A public cafeteria, a small cocktail lounge and a small specialty 
restaurant will also be located on the second floor. This level corresponds to the ticketing and waiting 
room level of the terminal buildings. On a mezzanine floor above there will be a large dining room, 
cocktail lounge, small private dining rooms and a large service kitchen. Total seating capacity of the 
building is approximately 1,600. 

A contract has recently been awarded and construction has started on the foundations and base- 
ment of this facility. Another contract is being prepared to complete the superstructure. 

Automobile Parking Lot 

Parking for approximately 5,440 automobiles will be provided in a large parking lot in the center 
of the terminal complex. Of these spaces, approximately 4,400 will be reserved for passengers and visitor 
parking, 900 spaces for employee parking and 100 for rent-a-car parking. 

Grading work has been completed for the rear half of the parking lot and this section will be paved 
with asphalt in the Spring. Another contract, RB-33, which will provide the utilities under the parking 
lot is now in the process of bidding. When this area is completed and in use, allowing displacement of 
present parking facilities, the front half of the lot will be constructed. 



4372 JOURNAL— CITY COUNCIL— CHICAGO February 1, 1961 

HANGAR AREA 

A large tract of land in the northwest section of the Airport has been reserved for hangar facilities. 
Nine hangars are planned in the initial stage, with additional space available for other hangars in the 
future. The extension of water, sewers, and power facilities into this area, plus a taxiway and a service 
roadway has been completed. Individual hangars will be provided with their own water reservoirs 
to afford adequate fire protection in the area without drawing on the main airport supply for emergencies. 
(A list of Hangar and Hangar Site Lessees is shown on page 12.) 

Contracts have been awarded and construction is under way for seven of the hangars. Aprons have 
been paved for the United, American and Eastern Hangars to allow partial occupancy by the tenants. 

CARGO AREA 

The cargo area located east of the terminal area will provide joint cargo facilities for most of the 
domestic airlines and the Railway Express Agency. There will be two joint cargo buildings. One will 
be 70 feet wide and 768 feet long and the other will be 48 feet wide and 768 feet long. Concrete aprons 
adjacent to the joint cargo buildings will be sufficient for parking ten aircraft. 

An additional cargo building will be built for The Flying Tiger Line, Inc. and will provide 36,000 
square feet of warehouse space and adjacent concrete aprons sufficient for parking six aircraft. 

The cargo area will be connected to the terminal area by a taxiway and a roadway and will be pro- 
vided with water, sewer and utility connections. Areas will be provided for automobiles and truck park- 
ing. (A list of the Cargo Building and Joint Cargo Building Lessees is shown on page 12.) 

A contract for the construction of the Joint Cargo Buildings has recently been awarded and construc- 
tion is scheduled to start shortly. Drainage and other utilities in this area are provided by a contract 
now in the bidding process. Apron paving will be installed this summer and this facility is scheduled to 
be in operation by January 1, 1962. 

FUELING SYSTEM 

A tank farm area has been established in the northwest corner of the airport beyond the hangar area. 
Facilities have been provided at this location for unloading and storing fuel. These include facilities for 
receiving fuel by pipe line, railroad tank car and truck. The tank farm will be connected to satellite 
storage facilities located around the terminal apron and to the hydrants at the aircraft parking positions 
by a system of underground pipe lines. Fuel will be transferred from the tank farm to satellite storage 
by means of underground pipe lines. Above-ground tanks are available for storing three days' supply of 
fuel based on 1965 anticipated demand. Underground tanks in the satellite areas will store one day's supply 
of fuel. 

The fuel tank farm has been completed and work is in progress on the balance of the fueling system 
in the Terminal Area. 

RUNWAYS AND TAXIWAYS 

Provision is being made to improve the present runway and taxiway system to accommodate jet traffic. 
The 8,838 foot runway was returned to service on January 7, 1959 after being strengthened by a concrete 
overlay. This runway was lengthened to 11,600 feet during the summer of 1960 in a program that was 
financed by Federal and State aid. 

The taxiways through the hangar area have been paved and are now in service. A section of the 
outer circular taxiway which serves the extended Runway 14R-32L is also complete and in use. 

UTILITIES 

The Bureau of Water of the City of Chicago is constructing a 48-inch water main from an existing 
city main to a connection inside the airport. The Bureau of Water of the City will contribute the differ- 
ence in cost between the 48-inch water main which will be installed and the cost of a 30-inch water main 
originally planned and included in the cost of this project. The water main will be extended to the ter- 
minal area reservoir and around the terminal area for fire protection. A water supply from the terminal 

8 



February 1, 1961 REPORTS OF COMMITTEES 4373 

area is through a 16-inch main around the hangar area, and a branch connection has been built to 
the tank farm area. Adjacent to the heating plant an additional water reservoir will be built. 

The water main has been extended to the terminal area and is in service through a temporary connec- 
tion to the existing reservoir. Sanitary sewers and water mains have been completed to the hangar area. 

STORM DRAINAGE IMPROVEMENTS 

The drainage system will be designed to control the rapid run-off from the large paved areas so 
that it will leave the airport at a predetermined rate which will not inundate the populated areas beyond 
the Airport. 

Several sections of the drainage system have been completed. Work is in progress on drainage lines 
beneath apron pavement. A contract is now being bid which will complete the storm drainage mains in 
the Cargo and Service Area. 

AIRPORT MAINTENANCE BUILDING 

The Airport Maintenance Building will be a one-story structure containing about 19,000 square feet 
of floor space. It will be in the service area and will contain a large garage area providing 18 parking 
spaces for large pieces of airport maintenance equipment. 

Foundations have been completed and structural steel is now being erected for this building. 

OTHER IMPROVEMENTS 

Other improvements to the Airport which will be financed from the Bond proceeds include the con- 
struction of sanitary sewers, a new heating and air conditioning plant, a new fire station and landscaping. 
Contracts have been awarded for construction of the foundation and basement and for the structural steel 
work for the heating and refrigeration plant. 

Sites are also being provided for a hotel, a motel, an automobile service station, a service and park- 
ing area for rent-a-cars, in-flight food catering buildings and a telephone exchange building. Construc- 
tion of facilities on these sites will be financed by the lessees with private funds. 

GENERAL STATUS OF CONSTRUCTION 

OF FIRST STAGE OF DEVELOPMENT 

(January 1, 1961) 

Since the start of the program in March 1959, contracts have been awarded for thirty-three separate 
construction projects for an aggregate dollar value of $96,598,616. Eight of these projects totalling 
$23,449,544 are for hangar construction and twenty-five totalling $73,149,072 are for general construction. 

Up to January 1, 1961, cash disbursements for completed work total $36,447,525. Of this total, 
$8,959,091 was for hangar construction and $27,488,434 was for general construction. Disbursements for 
November and December 1960 were $3,915,136 and $6,205,588 respectively, indicating an acceleration of 
construction. 

Percentages of completion for various contracts through December 31, 1960 are shown in Exhibit A 
in Naess & Murphy's letter on page 37. 

In addition to these projects United Air Lines has completed a flight catering building on its 
hangar lot and Illinois Bell Telephone Company has a Dial Equipment Building under construction in 
the service area. 

Extensive improvements have been made by several public utility companies and two pipe line 
companies in bringing their services onto the airport and constructing extensive distribution systems 
within the airport boundaries. 

In addition the airlines have expended approximately $1.5 million on temporary passenger and mainte- 
nance facilities to meet greatly expanded traffic demands during the interim period while the permanent 
improvements financed from the revenue bond issue are being completed. 



4374 



JOURNAL— CITY COUNCIL— CHICAGO 



February 1, 1961 



REVISED PROJECT COST AND ESTIMATED DATE OF COMPLETION 

The following are summaries of the original estimated costs of construction of the General Facilities 
and Hangars set forth in detail in the Engineering Report of Naess & Murphy, Architects-Engineers, 
dated November 14, 1958; their revised estimates of construction costs of the General Facilities as of 
January 17, 1961 ; the construction costs of the General Facilities covered by funds available to January 
1, 1961 ; and their estimates of the additional costs of the General Facilities to be financed by the author- 
ized issues of $25,000,000 Revenue Bonds, Series A of 1961 and $10,000,000 Revenue Bonds, Series B 
of 1961. 

No costs have been included for land acquisition since all of the land required for purposes of con- 
struction is presently owned by the City. 

-, , j, ..... Estimate of Estimate of 

General taciMies Original Revised Construction Add'l Costs Add'l Costs 

Estimate Estimate Costs Covered Allocated to Allocated to 

of Const. of Const. by funds $25,000,000 $10,000,000 

Costs at Costs at Available to Series A Series B 

Nov. 14, 1958 Jan. 17, 1961 Jan. 1, 1961 Bonds Bonds 

Runways & Taxiways $ 4,552,000 $ 5,277,318 $ 4,262,221 $ 951,512 $ 63,585 

Utilities 9,432,000 16,255,851 9,940,139 4,662,462 1,653,250 

Fueling System 5,413,000 7,290,480 7,290,480 

Terminal Area 37,720,000 62,357,468 44,440,532 12,673,717 5,243,219 

Hangar Area 940,000 2,016,864 1,791,915 11,357 213,592 

Cargo Area 2,253,000 4,217,239 2,828,352 1,334,175 54,712 

Service Area 683,000 1,468,260 717,977 750,283 

Performance Bond 609,000 998,825 719,438 206,372 73,015 

Survey & Testing 992,687 713,303 206,370 73,014 

Miscellaneous 412,867 312,867 70,000 30,000 

Engineering 3,738,000 6,135,904 4,599,291 1,135,037 401,576 

Contingencies 6,534,000 3,208,891 2,478,754 730,137 

$71,874,000 $110,632,654 $77,616,515* $24,480,039 $8,536,100 
* Of this amount $73,149,072 represents the dollar value of awarded contracts at December 31, 1960. 

Hangar Costs* 

Allocation of 

Proceeds, 

Bonds, Series 

of 1959 

American Airlines, Inc $ 7,500,000 

Capital Airlines, Inc. 3,200,000 

Delta Air Lines, Inc 1,750,000 

Eastern Air Lines, Inc 3,820,000** 

United Air Lines, Inc 5,000,000 

North Central Airlines 1,000,000** 

Northwest Airlines, Inc. and Braniff 

Airways, Incorporated 1,750,000 

Ozark Air Lines, Inc 750,000 

Trans World Airlines, Inc 5,000,000** 

The Flying Tiger Line, Inc. (Cargo 

Building) 700,000 

$ 30,470,000 30,470,000 

Total Estimated Project Cost $102,344,000 $141,102,654 

*The estimates of the construction costs of the various hangars and the cargo building were received from the 
respective Airlines committing for each facility and include all architectural and engineering costs as well as amounts to 
cover contingencies. The estimated cost of each of these facilities, as set forth above, determined the amount to be 
allocated to the construction of each from the proceeds of the Bonds, Series of 1959. Under the terms of the Hangar and 
Hangar Site Leases and the Cargo Building and Site Lease signed by the respective Airlines, each Airline agreed to 
deposit in escrow with The First National Bank of Chicago, as escrowee, any monies over and above the estimated cost 
as set forth above, which may be required to complete construction of its facility. 

**To January 1, 1961, three airlines have made escrow deposits as follows: Eastern $400,000; Trans World $160,000; 
North Central $89,034.65. 

10 



February 1, 1961 REPORTS OF COMMITTEES 4375 

The Architects-Engineers estimate that all work presently under contract will be completed during 
1961 and that the new terminal buildings can be substantially occupied and in operation by January 1, 1962. 

With the proceeds from the balance of the authorized Bonds, Series B of 1961, the Architects- 
Engineers estimate that most of the remaining work can be completed during 1961, except the restaurant 
building, the International terminal building, certain portions of the parking lot, and some areas of 
landscaping which cannot be completed until the middle of 1962. 



PURPOSE OF ISSUE 

The $25,000,000 principal amount of Chicago-O'Hare International Airport Revenue Bonds, Series A 
of 1961, to be issued at the present time has been determined on the basis of the following estimates: 

Additional project costs allocated to Bonds, Series A of 1961 by 

Naess & Murphy $24,480,039 

Interest on Bonds, Series A of 1961 from January 1, 1961 to Janu- 
ary 1, 1962 1,187,500 

Financing costs, including legal fees, printing and Depositary's fees 100,000 



$25,767,539 
Less : Estimated earnings from investment of Construction Fund 
including unexpended balance of the proceeds from Bonds, Series 
of 1959 767,539 



Principal amount of Bonds $ 25,000,000 



AUTHORIZATION OF BONDS 
Series A and B of 1961 

In August of 1960, Naess & Murphy, Architects-Engineers, advised the City that it was apparent that 
additional monies would be required to pay for unforeseen increases in the construction costs of the Im- 
provements in the first stage of development of O'Hare Airport. As a result of this information, the City 
requested Naess & Murphy to prepare an engineering report reviewing the construction costs and setting 
forth in detail the increases therein. Naess & Murphy in preparing their report reviewed all phases of the 
construction program with the Airlines and the Airlines' engineering consultants. 

At the same time the City requested Landrum and Brown, the Airport Consultants retained by the 
City for the past two years in accordance with the provisions of the Ordinance, to prepare a Traffic and 
Earnings Report reviewing and updating the estimates of traffic and earnings for O'Hare Airport. 

Summaries of the Naess & Murphy Engineering Report dated January 17, 1961 and the Landrum 
and Brown Traffic and Earnings Report, of January, 1961 are appended to this Official Statement. 

After studying Landrum and Brown's new Traffic and Earnings Report and Naess & Murphy's revised 
estimate of the construction cost of the Improvements in the first stage of development and, in accordance 
with the powers granted to it in the Act, the City, by Supplemental Ordinance dated February 1, 1961, 
authorized an issue of $25,000,000 City of Chicago, Chicago-O'Hare Airport Revenue Bonds, Series A of 
1961 and $10,000,000 Revenue Bonds, Series B of 1961, to pay the additional costs of the Improvements. 
Of this authorization, the $25,000,000 Bonds, Series A of 1961 are being offered at this time and the 
$10,000,000 Bonds, Series B of 1961 will be issued at a later date as funds are needed. 



4376 JOURNAL—CITY COUNCIL— CHICAGO February 1, 1961 

SUMMARY OF COVENANTS OF 
AIRPORT USE AGREEMENT AND LEASES 

The City and the respective Airlines listed below have executed the Airport Use Agreement and the 
Leases listed below as indicated, in each case, opposite the individual Airline's name. Upon delivery of 
the Bonds, Series of 1959 by the City, the Airport Use Agreement and such Leases became effective, as of 
January 1, 1959, for a term of 40 years. 

Hangar and Lease of Cargo Joint Cargo Fueling 

Airport Use Hangar Site Terminal Building and Building and System 

Name of Airline Agreement Lease Facilities Site Lease Site Lease Lease 

American Airlines, Inc * * * * * 

Braniff Airways, Incorporated * # * * * 

Capital Airlines, Inc * * * * * 

Chicago Helicopter Airways, Inc * 

Continental Air Lines, Inc * * * * 

Delta Air Lines, Inc * * * * * 

Eastern Air Lines, Inc * * * * * 

The Flying Tiger Line, Inc * * * 

Lake Central Airlines, Inc * * * 

North Central Airlines, Inc * * * * 

Northwest Airlines, Inc * # * * * 

Ozark Air Lines, Inc * * * * * 

Pan American World Airways, Inc * * * 

Trans World Airlines, Inc * * * * * 

United Air Lines, Inc * * * * * 

Trans-Canada Air Lines * * * * 

# Braniff Airways, Incorporated and Northwest Airlines, Inc. are jointly and severally committed under one Hangar 
and Hartgar Site Lease. 

Wherever, the term "Airline" or "Lessee" is used in the description of the Airport Use Agreement or 
any Lease mentioned above, it means the Airline which has entered into such Agreement or Lease with 
the City. Wherever the term "Airline Parties" is used it means those Airlines indicated above as having 
entered into such Airport Use Agreement together with other Airlines which may enter into such 
Agreement with the City. 

AIRPORT USE AGREEMENT 

The City has executed Airport Use Agreements with the Airlines indicated in the schedule shown 
above covering the use of the Airport by said Airlines. 

Covenants to Use Airport 

Each Airline covenants and agrees with the City that subject to such orders, rules and regulations 
as may be promulgated from time to time by the Federal Government or any agency thereof, it will during 
each fiscal year any Approved Revenue Bonds are outstanding, use the Airport and provide for fee land- 
ings of its aircraft at the Airport ; provided, however, that if an Airline does not have terminal building 
space, this covenant shall be applicable to Airline from and after such time as adequate terminal building 
space (or adequate cargo building space for The Flying Tiger Line, Inc.) is made available. 

Approved Revenue Bonds 

Approved Revenue Bonds means Bonds, Series of 1959 and Series A and B of 1961, any additional 
Bonds to be issued pursuant to the provisions of Section 2.15 of the Ordinance, and such additional Bonds 
as may be issued under the provisions of Section 2.16 of the Ordinance and approved on behalf of the 
Airlines. 

Grant of Rights 

Each Airline shall have the right and privilege to operate an air transportation system at the Airport, 
subject to rules and regulations promulgated by City and further subject to the payment of fees and charges 
hereinafter provided, including the use, in common with others, of certain areas and facilities available for 
common use. 

12 



February 1, 1961 REPORTS OF COMMITTEES 4377 

Flight Fees for Landing of Aircraft 

Each Airline shall pay the City a Flight Fee for each separate landing (with certain minor exceptions, 
such as touch-and-go operations) at the Airport of an aircraft operated by such Airline. 

Flight Fee Revenue Requirements 

The Flight Fee Revenue Requirements for any fiscal year during which any Approved Revenue Bonds 
are outstanding shall mean the excess of Airport Expense for such year over the Revenues (exclusive of 
all Flight Fees payable for such fiscal year by Airline Parties by reason of fee landings or by application 
of rentals for passenger ramp areas leased to any Airline as payment on account thereof) for such year 
under the Ordinance. Airport Expense for any fiscal year, as defined in the Airport Use Agreement, includes : 

(a) operation and maintenance expenses, including full provision for all accounts receivable uncollected 
30 days after due date. 

(b) interest and depreciation on the City's investment in the Airport (other than Government Grants 
in Aid or proceeds from the sale of Approved Revenue Bonds), 

(c) the sum to be deposited in the Reserve Maintenance Account, and 

(d) beginning with the fiscal year 1962, an amount equal to 1.25 times the Principal and Interest 
Requirements (as such term is defined in the Ordinance) on Approved Revenue Bonds outstanding 
at the beginning of such fiscal year, and any premium paid on the redemption of such Bonds on 
July 1 of such fiscal year and January 1 of the succeeding fiscal year or the premiums paid on 
such Bonds purchased during such fiscal year in the open market or by tender. 

Flight Fee While Any Approved Revenue Bonds are Outstanding 

During each fiscal year the Flight Fee payable to the City for each fee landing of an aircraft shall be 
such amount per each 1,000 lbs. of the approved maximum landing weight of such aircraft as equals the 
quotient obtained by dividing (a) the Flight Fee Revenue Requirements for the fiscal year by (b) the number 
of thousands of pounds of the aggregate approved maximum landing weight of all aircraft operated by all 
Airline Parties and landed in fee landings, both as estimated by the Airport Consultant prior to January 1 
and July 1 of each year. 

Deficiency in Flight Fees While Any Approved Revenue Bonds are Outstanding 

In the event that in any fiscal year the Revenues for such fiscal year (excluding any Flight Fee 
deficiency for such fiscal year) shall be less than the amount of Airport Expense, the City Comptroller 
shall, promptly, but not later than January 15, after such fiscal year, furnish to Airlines an estimate of the 
Revenues and Airport Expense for such year, including an estimate as to whether v or not any Flight Fee 
deficiency exists for such year, and each Airline shall pay its pro rata share of any Flight Fee deficiency 
for such year shown by such estimate. In the event the Flight Fee deficiency for any fiscal year shown in 
the audited statement exceeds the Flight Fee deficiency shown in the estimate of the City Comptroller, then 
each Airline shall pay its pro rata share of such excess. 

Minimum Flight Fee 

Notwithstanding the foregoing provisions, the minimum Flight Fee payable shall at no time be less 
than $0.06 per each 1,000 lbs. of the approved maximum landing weight of each aircraft. 
Aircraft Parking Fee 

City may charge Airline fees for parking its aircraft in public parking areas in excess of the free 
period allowed therein and Airline shall pay City a stipulated fee for overtime parking of its cargo aircraft 
in a public cargo ramp area or its passenger aircraft in a public passenger ramp area. 

Payment of Fees 

City shall, within 15 days following the end of each month, furnish Airline a statement of any Flight 
Fee and Aircraft Parking Fees payable by it for such month. The amount payable by Airline for any 
month shall be due and payable on the last day of the next succeeding month. 

City shall, as promptly as practicable, furnish to Airline a statement of the amount payable as Airline's 
pro rata share of any Flight Fee deficiency, which shall be due and payable within 20 days after such 
statement is mailed or delivered by City. 

13 



4378 JOURNAL— CITY COUNCIL— CHICAGO February 1, 1961 

Under the Leases of Terminal Facilities contemporaneously entered into between City and certain 
Airlines, City leases to each of such Airlines designated ramp areas and each such Airline agrees to pay 
certain rentals therefor. The ramp rental payable by each such Airline is the equivalent of a commitment of 
payment by such Airline of a minimum amount of Flight Fees. Therefore, any amount payable by such 
Airline as rental for any month for passenger ramp areas shall be applied, as provided in the Airport Use 
Agreement, against amounts payable by such Airline under such Agreement for Flight Fees. 

HANGAR AND HANGAR SITE LEASE 
Lease of Premises 

Under the terms of each Hangar and Hangar Site Lease, the City agrees to lease to the Airline Lessee 
indicated in the schedule on page 12, for its exclusive use, a defined site, together with any hangar and 
improvements located thereon. 

Estimated Cost of Hangar 

There has been filed with the City Clerk preliminary plans and specifications for the construction of 
Lessee's hangar, together with an estimate of the cost thereof. Such estimate established the amount 
allocated from the Bond Proceeds (Series of 1959) for the construction of said hangar. 

Construction of Hangar 

Lessee and City shall take such action so that final plans and specifications for Lessee's hangar may be 
completed with promptitude. 

If the lowest responsible bids for the construction of Lessee's hangar, as determined by the Purchasing 
Agent of City, exceed the estimated cost thereof, then the Purchasing Agent shall promptly so advise the 
Lessee and said Lessee shall, within 10 days either (a) deposit such excess in escrow with The First 
National Bank of Chicago, as Escrowee, or (b) notify the Purchasing Agent that the Lessee requests that 
the final plans and specifications be revised by City for the purpose of permitting the construction within 
the estimated cost, or such larger amount as may be specified by said Lessee, and said Lessee shall cooperate 
so that, not later than 6 months following such notice, satisfactory revised plans and specifications shall be 
prepared within the estimated cost, or such larger amount specified by said Lessee. 

City shall then promptly proceed to obtain bids for construction of said hangar based on the revised 
plans and specifications. If after the opening of such bids, the cost of construction shall exceed the 
estimated cost, then the Lessee shall, within 10 days after being so advised, deposit such excess in said 
escrow. 

If any modification or alteration of plans and specifications shall increase the cost of construction of 
Lessee's hangar, and if such cost, as increased, exceeds the estimated cost plus any amounts theretofore 
deposited by said Lessee in escrow, then said Lessee shall within 10 days after notification, deposit such 
excess in escrow. 

City shall cause Lessee's hangar to be constructed as promptly as practicable. Lessee's architect or 
engineer may, without cost to City, assist in the supervision of construction. 

All moneys deposited in escrow shall be held by the Escrowee with instructions to permit City to with- 
draw such funds from time to time by filing a statement of the Commissioner of Public Works and a 
certificate of the Consulting Engineer that City is in need of the amount to be withdrawn to pay the 
balance of the cost of construction. 

If pursuant to the foregoing, any Lessee shall deposit any amounts under said escrow, then upon com- 
pletion of its hangar, the Consulting Engineer shall certify to the Escrowee that such hangar has been 
completed and that no additional funds from said escrow shall be needed to pay the cost of construction; 
whereupon, any funds remaining in said escrow shall be returned to Lessee. All escrow fees and charges, 
with respect to funds deposited in escrow, shall be paid by Lessee. 

14 



February 1, 1961 REPORTS OF COMMITTEES 4379 

Rentals 

Lessee shall pay a stipulated monthly ground rental commencing either (1) January 1, 1962, or (2) the 
first day of the month next succeeding the date when the taxiways, roadways, water lines, sewer lines and 
drainage ditches serving its hangar site are available for normal use, whichever is earlier, and during the 
balance of the term of the Lease. 

Lessee shall also pay a stipulated monthly additional rental on or before the first day of each month 
commencing January 1, 1962 (regardless of the date on which its hangar shall be completed), and thereafter 
during the remaining term of the Lease so long as any Bonds, Series of 1959 and Series A of 1961, or any 
additional Bonds issued pursuant to Section 2.15 of the Ordinance are outstanding. 

LEASE OF TERMINAL FACILITIES 

City has executed a Lease of Terminal Facilities with each of the Airline Lessees indicated in the 
schedule shown on page 12. 

Lease of Space in Present Terminal Building 

Until space in a New Terminal Building is available to a Lessee, now occupying space in the Present 
Terminal Building, Lessee shall continue to occupy and use the space in the Present Terminal Building 
leased to it by the City under the Lease dated October 28, 1955. Such space in the Present Terminal 
Building for exclusive use of a Lessee includes Ticket Counter Space, Office Space and Operations Space, 
and for use in common with others includes Toilet Space, Outbound Baggage Space, Sanitary Room Space, 
Inbound Baggage Space and Covered Walkway Space. 

Within 60 days from the date on which the Consulting Engineer certifies that space in a New Terminal 
Building is available for its occupancy and use, Lessee shall surrender its space in the Present Terminal 
Building. 

Lease of Space in New Terminal Building 

The City leases to Lessee and grants it the exclusive use of space in a New Terminal Building, consist- 
ing of the following categories : Ticket Area Space, Operation Area Space, Hold Area Space, Mezzanine 
Area Space, Out Baggage Space and Claim Baggage Space. 

Passenger Ramp Areas 

The City also leases individual designated passenger ramp areas (referred to as "Airline's Passenger 
Ramp Area") adjacent to each New Terminal Building to various Lessees and grants to each of them the 
use of its designated ramp area, subject to the construction, installation, maintenance, use and operation 
of underground piping and related facilities of the underground fueling system. 

Rentals 

Commencing the first day of the month next succeeding the effective date of the Lease and continuing 
through December 31, 1961, a Lessee presently occupying space in the Present Terminal Building shall pay 
to City, as rental for its terminal building space, the monthly rental specified with respect to its space in 
the Present Terminal Building. 

Commencing January 1, 1962, and thereafter during the term of the Lease, Lessee shall pay to the City, 
a stipulated monthly rental based upon its space in a New Terminal Building. 

Commencing January 1, 1962, and thereafter during the term thereof so long as any Bonds, Series of 
1959 and Series A of 1961, or any additional Bonds issued pursuant to Section 2.15 of the Ordinance are 
outstanding, a Lessee of a passenger ramp area shall pay to City, a stipulated monthly rental for its Airline 
Passenger Ramp Area, subject to increase as hereinafter referred to. Such rental payable by Lessee is 
recognized as being the equivalent of a commitment of payment by Lessee of a minimum amount of Flight 

15 



4380 JOURNAL— CITY COUNCIL— CHICAGO February 1, 1961 

Fees under the Airport Use Agreement and, therefore, shall be available for application against such Flight 
Fees as provided in the Airport Use Agreement. 

If any additional Bonds shall be issued to provide funds to pay the cost of completion of the Improve- 
ments, then the total rentals payable during each fiscal year, so long as any Bonds, Series of 1959 and Series 
A of 1961, or any additional Bonds issued pursuant to Section 2.15 of the Ordinance are outstanding, by 
all Lessees for their Airline's Passenger Ramp Areas, shall be increased in the aggregate, effective either 
January 1, 1962, or the date of the delivery by City of such additional Bonds to a purchaser, whichever is 
later, by an amount equal to 1.10 times the Principal and Interest Requirements of such additional Bonds 
for each such fiscal year, as defined in the Ordinance. 

Lessee shall, on or before the first day of each month commencing with the month next succeeding the 
effective date of the Lease, pay, at the office of the City Comptroller, all rentals payable for such month ; 
provided, however, that Lessee's pro rata share of rental specified for Outbound Baggage Space, Inbound 
Baggage Space, Airline Toilet Space and Sanitary Room Space in the Present Terminal Building shall be 
payable on or before the twentieth day following the month for which such rental is payable. 



CARGO BUILDING AND SITE LEASE 
Lease of Premises 

Under tne terms of this Lease, the City agrees to lease to The Flying Tiger Line, Inc. (herein called 
"Lessee"), for its exclusive use, a defined site, together with a cargo building and improvements thereon 
to be located in the easterly portion of the Cargo Area. As promptly as practicable, the Consulting Engineer 
shall specify within the foregoing requirements the exact location on the Airport of the demised premises. 

Estimated Cost of Cargo Building 

There has been filed with the City Clerk preliminary plans and specifications for the construction of 
Lessee's cargo building, together with an estimate of the cost thereof. Such estimate established the 
amount allocated from the Bond proceeds for the construction of said cargo building. 

Construction of Cargo Building 

The provisions for filing final plans and specifications, receiving bids, constructing the facility, and the 
depositing of moneys in escrow to cover construction costs in excess of the estimates, all as set forth in the 
summary of the Hangar and Hangar Site Lease, apply to the Cargo Building and Site Lease. 

Rentals 

Lessee shall pay a stipulated monthly ground rental on or before the first day of each month com- 
mencing January 1, 1962 and thereafter during the term of the Lease. 

Lessee shall also pay a stipulated monthly additional rental on or before the first day of each month 
commencing January 1, 1962 (regardless of the date on which the cargo building shall be completed), and 
thereafter during the remaining term of the Lease so long as any Bonds, Series of 1959 and Series A of 
1961, or any additional Bonds issued pursuant to Section 2.15 of the Ordinance are outstanding. 



JOINT CARGO BUILDING AND SITE LEASE 
Lease of Premises 

Under the terms of the Joint Cargo Building and Site Lease, the City has agreed to grant to each 
Airline Lessee, indicated in the schedule on page 12 : (a) the exclusive use of certain premises in the Joint 
Airline Cargo Area and in one of the two Joint Cargo Buildings ; such premises consisting of Joint Cargo 
Building Space and adjacent truck parking area ; and (b) the use in common with other Lessees of certain 
premises in the Joint Airline Cargo Area and in one of the two Joint Cargo Buildings ; such premises 
consisting of Joint Cargo Building Space not leased to any specific Lessee and the cargo ramp aprons 
adjacent thereto and all general area in the Joint Airline Cargo Area. 

16 



February 1, 1961 REPORTS OF COMMITTEES 



Lessee shall pay a stipulated monthly ground rental on or before the first day of each month com- 
mencing January 1, 1962 and thereafter during the term of the Lease. 

Lessee shall also pay a stipulated monthly additional rental on or before the first day of each month 
commencing January 1, 1962 (regardless of the date on which the buildings and improvements shall be 
completed), and thereafter during the remaining term of the Lease so long as any Bonds, Series of 1959 and 
Series A of 1961, or any additional Bonds issued pursuant to Section 2.15 of the Ordinance are outstanding. 

FUELING SYSTEM LEASE 
Lease of Premises 

Under the terms of this Lease, the City agrees to grant to each of the Airline Lessees, indicated in the 
schedule on page 12, in common with each other, certain rights and privileges in the fueling system to be 
constructed at the Airport. 

The rights and privileges of each Lessee shall include the exclusive use, in common with each of the 
other Lessees, of the following premises (as defined in said Lease) : the Tank Farm Area, the Truck Fill 
Stand Area, the Satellite Area and the Piping Area. 

Notwithstanding the foregoing, City shall have such rights and privileges as may be necessary or ap- 
propriate for the construction of the fueling system by City. In addition, City shall have the right to con- 
struct, install, maintain, use and operate piping and related facilities in the Piping Area, but only if such ac- 
tion shall not interfere with the use of such area, by any one or more of the Lessees. 

Use of Premises by Others 

The fueling system shall be made available by Lessees for participation, on such equitable basis of pay- 
ment to or for the account of Lessees as may be approved by the Commissioner of Aviation, by any other 
Airline Party not a Lessee, but only if such participation will not impair the usefulness of such fueling sys- 
tem for the actual and reasonably anticipated requirements of Lessees and any other then participants in 
such system ; and provided further, that no such other Airline Party shall be entitled to use, without the 
consent of the Lessee or Lessees involved, any portion of such fueling system which shall consist of any dis- 
tribution outlet located in any passenger or cargo ramp area at the Airport which shall have been leased by 
City to such Lessee or Lessees or any storage facilities, located in either the Tank Farm Area or the Satel- 
lite Area, which shall have been designated for the exclusive use of such Lessee or Lessees under the terms 
of any agreement at the time in effect between all Lessees. 

Rentals 

The monthly rental specified in the 1955 Tank Farm Lease, dated October 28, 1955, between City and 
American Airlines, Inc., for use of the present tank farm shall continue to be payable until December 31, 
1961. 

Each Lessee shall pay a stipulated monthly ground rental on or before the first day of each month, 
commencing January 1, 1962 and thereafter during the term of the Lease to such Lessee. 

Each Lessee shall also pay a stipulated monthly additional rental on or before the first day of each 
month, commencing January 1, 1962 (regardless of the date on which the fueling system shall be completed) 
and thereafter during the remaining term of the Lease as to such Lessee, so long as any Bonds, Series of 
1959 and Series A of 1961, or any additional Bonds issued pursuant to Section 2.15 of the Ordinance are 
outstanding. 

In the event that the Lease shall be terminated by City as to any Lessee, then notwithstanding the fore- 
going provisions, the total stipulated monthly ground rentals and total stipulated monthly additional rentals 
payable thereunder by all other Lessees shall be respectively increased in the aggregate, effective as of the 
first day of the month next succeeding such termination, by the amount of stipulated monthly ground rental 
and stipulated monthly additional rental, respectively, payable thereunder at the time of such termination by 
the terminated Lessee. 

17 



4382 JOURNAL— CITY COUNCIL— CHICAGO February 1, 1961 

SUMMARY OF GENERAL COVENANTS 
APPLICABLE TO AIRPORT USE AGREEMENT AND LEASES 
Rentals 

The rentals stipulated in the various Leases (as set forth on page 45 of Landrum and Brown's Sum- 
mary Report, appended to this Official Statement) shall be payable commencing on the dates and for the 
respective periods therein provided, regardless of the dates on which the facilities referred to in the respec- 
tive Leases shall be constructed or shall be available for occupancy and use by the Lessees. 

The City and the Lessees, under the various Leases, agree that so long as any Approved Revenue Bonds 
are outstanding, the rentals stipulated therein shall not be reduced. All amounts payable to the City under 
the terms of the Use Agreement and the Leases shall be paid at the office of the City Comptroller, and if not 
paid when due, shall bear interest at the rate of 7% per annum until paid. 

Ingress and Egress 

Subject to rules and regulations promulgated by the City, the Lessees shall have the rights and privi- 
leges over the Airport of ingress to and egress from the demised premises, as set forth in detail in the re- 
spective Leases, including the right to install, maintain, use and operate facilities and equipment on the 
Airport and the right to connect the leased premises with any taxiways, roadways, water lines, sewer lines, 
drainage ditches and utility lines being furnished by the City. 

Construction, Maintenance and Repair by Lessee 

Lessee may construct .or install, at its own expense, any improvements, facilities and equipment, in any 
premises leased to it for its sole exclusive use. Lessee, together with other Lessees of such premises, may 
construct or install at its or their own expense, any buildings, improvements, facilities and equipment in any 
premises leased to it and such Lessees for their common use. All such construction or installation shall be 
made only after obtaining the approval of the Commissioner of Public Works of the plans and specifica- 
tions and obtaining requisite building or construction licenses or permits. All buildings and permanent im- 
provements constructed or installed by Lessee shall become the property of the City upon completion of 
construction. Lessee shall keep and maintain all buildings, improvements and facilities and additions there- 
to, constructed or installed by Lessee on the leased premises in good condition and repair. 

After completion of construction by the City of buildings and improvements on leased premises in the 
Hangar or Cargo Areas or a part of the Fueling System, Lessee shall keep the same in good condition and 
repair, subject to the provisions hereinafter summarized under the subheading "Insurance After Comple- 
tion of Construction." 

Lessee shall keep the leased premises, all construction completed and installations made by City, and all 
construction and installations made by Lessee in a sanitary and sightly condition, and shall comply with all 
applicable health and safety requirements. 

Use of Premises on Behalf of or by Others 

Any of the premises leased to a Lessee may also be used, in whole or in part, by Lessee on behalf of 
or in conjunction with any other Airline Party or Parties in connection with the conduct of air transporta- 
tion to the same extent as Lessee is entitled to use such premises in its own behalf. Lessee shall also be 
entitled to sublease any of such premises, in whole (subject to the prior approval of City) or in part, to any 
other Airline Party or Parties. 

In case of any use of any of such premises by Lessee on behalf of or in conjunction with any other Air- 
line Party or Parties, or in the case of any sublease of any of such premises, Lessee shall remain liable for 
its obligations under said Lease. 

Notwithstanding the foregoing, no use of any of the premises leased may be made by Lessee on behalf 
of or in conjunction with any other Airline Party or Parties, and no sublease of any part of such premises 
may be made by Lessee, except in each case with the consent of the Commissioner of Aviation, if such use 
or sublease involves payment to Lessee by such other Airline Party or sublessee of an amount greater than 
Lessee's expenses. 

18 



February 1, 1961 REPORTS OF COMMITTEES 4383 

Completion of Construction 

The City agrees to use its best efforts to cause the Improvements at the Airport, in accordance with 
the final plans and specifications therefor, to be completed as early as practicable. 

Maintenance and Operation by City 

City shall maintain and keep in good condition and repair, the New Terminal Buildings and all addi- 
tions and improvements thereto provided by the City and all roadways, taxiways, water lines, sewer lines, 
drainage ditches, additions, improvements, facilities and equipment now or hereafter provided by City for 
common use, serving any leased premises but located outside the leased premises. 

City shall operate the Airport in accordance with the rules and regulations and with standards and rat- 
ings for airports of similar size and character issued by the Civil Aeronautics Administration. City shall 
also operate the Airport in a manner so as to produce revenues of a nature and amount which would be 
produced by a reasonably prudent operator. 

City shall use its best efforts in the selection of an operator for the purpose of providing transportation 
service to and from the Airport of passengers and their baggage in a satisfactory and efficient manner. 

City shall use its best efforts to keep the Airport open and in operation for landings and take-offs of 
aircraft of any type using facilities similar to those at the Airport. City shall maintain order at the Airport. 

Covenant Against Liens 

Lessees shall keep the leased premises and the buildings, improvements and facilities free and clear of 
any and all liens in any way arising out of the action, or use thereof by Lessee ; provided, however, that 
Lessee may in good faith contest the validity of any lien. 

Taxes on Leased Premises 

City shall pay any and all taxes or special assessments, if any, which may be levied or assessed upon 
the leased premises ; provided, however, that the foregoing shall not apply to taxes on any personal prop- 
erty or leasehold of Lessee located on the leased premises. 

Rules and Regulations 

Each Lessee or Airline Party shall observe and obey all rules and regulations governing the conduct and 
operation of the Airport, promulgated from time to time by the City, which are reasonably required for the 
prudent and efficient operation of the Airport and are not inconsistent with the reasonable exercise by Les- 
see or Airline Party of any right or privilege granted to it under any agreement between said Lessee or 
Airline Party and City relating to the Airport, nor inconsistent with safety nor with the rules and regula- 
tions of any Federal or State agency having jurisdiction with respect thereto, nor inconsistent with the pro- 
cedures prescribed or approved from time to time by the Civil Aeronautics Administration or any other 
governmental authority having jurisdiction over operations at the Airport. 

City, however, shall have no control over the rates, fares or charges that any Lessee or Airline Party 
may prescribe in connection with its conduct of an air transportation business. 

Liability Arising from Act of Lessees and Airline Parties 

Each Lessee or Airline Party shall, at its own expense, keep in force insurance of the following types 
and in not less than the following amounts, insuring Lessee or Airline Party and City against all liabilities 
for accidents arising out of or in connection with Lessee's or Airline Party's use and occupancy of and op- 
erations at the Airport, except when caused by City's negligence alone or jointly with any person other 
than such Lessee or Airline Party, its agents, contractors and sub-contractors, and shall furnish to City 
certificates evidencing such insurance, naming City as an additional assured thereunder, subject to certain 
limitations in respect of City's negligence, to-wit : 

Aircraft Public Liability Insurance $ 100,000 per person 

$1,000,000 per accident 

Aircraft Property Damage Insurance $ 200,000 per accident 

Comprehensive Public Liability Insurance $ 100,000 per person 

$ 250,000 per accident 
Comprehensive Property Damage Insurance $ 100,000 per accident 

19 



4384 JOURNALr— CITY COUNCII^-CHICAGO February 1, 1961 

The foregoing requirements for insurance apply to the Use Agreement and all Leases except the 
Fueling System Lease in which the type and limits are as follows : 

Comprehensive Public Liability Insurance $ 200,000 per person 

$5,000,000 per accident 
Comprehensive Property Damage Insurance $5,000,000 per accident 

Insurance During Construction 

The City shall, until the date of completion of the Improvements, as certified by the Consulting En- 
gineer, keep in force public liability and property damage insurance, insuring City, in the aforementioned 
amounts specified in the Use Agreement and the Leases and also builder's risk insurance. City may cause 
such insurance to be effected in whole or in part by the contractors performing the construction work, but, 
in any event, the cost of such insurance shall be deemed a part of the cost of construction. 

Insurance After Completion of Construction 

A Lessee is required to bear the cost of insurance maintained by the City on the Improvements (exclud- 
ing the Terminal facilities) following construction thereof, consisting of a so-called "fire and extended 
coverage policy or policies," not exceeding, without consent of such Lessee, 80% of the full insurable value 
thereof. All such insurance policies shall name City and such Lessee as insureds, and shall provide that pro- 
ceeds of such insurance shall be payable to City and such policies shall be deposited with the City Comp- 
troller. 

Should any building or improvement constructed by the City on the premises leased to a Lessee be 
damaged or destroyed on or after the date upon which the completion of the buildings and improvements 
is certified by the Consulting Engineer, and if any insurance proceeds are payable by reason thereof, City 
shall immediately after such damage or destruction cause plans and specifications and an estimate of cost 
for repairing, replacing or reconstructing the damaged or destroyed property to be prepared. Lessee shall 
be consulted for its suggestions before any such plans and specifications are approved. Such insurance pro- 
ceeds shall be applied, as promptly as practicable, to the repair, replacement or reconstruction of the dam- 
aged property. If such proceeds are more than sufficient for such purpose, the balance remaining shall be 
transferred to the credit of the Sinking Fund Account. If such insurance proceeds are insufficient for such 
purpose, the deficiency shall be supplied by City from any moneys in the Reserve Maintenance Account. 

Abatement of Rentals in Event of Closing 

In the event that the Airport shall be closed for any period of time by any order or direction of City or 
any other governmental authority or agency, or by any order or direction of any court of competent juris- 
diction, while any Approved Revenue Bonds are outstanding, then to the extent, but only to the extent, that 
sufficient moneys are then held to the credit of he Emergency Reserve Account under the Ordinance, the 
rentals provided in the Leases as payable by Lessees shall abate for the period of such closing. 

In the event the Airport shall be so closed for the landing or taking off of all turbo jet powered aircraft, 
which at the time are landing or taking off, in the course of normal operations, at one or more airports hav- 
ing facilities similar to those at the Airport, but shall not be closed to the landing or taking off of other air- 
craft operated by any Airline Parties, while any Approved Revenue Bonds are outstanding, then 50% of 
the rentals payable by Lessees under the Leases shall abate for the period of such closing, but in no event 
for more than 6 months for any single closing, in any fiscal year, to the extent but only to the extent that 
sufficient moneys are then held to the credit of the Emergency Reserve Account. 

Termination by City 

City may terminate the Leases or the Airport Use Agreement by giving sixty (60) days advance notice 
upon or after the happening and during the continuance of any one of the following events : 

(a) The filing by Airline of a voluntary petition in bankruptcy. 

(b) The institution of proceedings in bankruptcy against Airline and the final adjudication of 
Airline as a bankrupt pursuant to such proceedings. 

(c) The taking by a court of competent jurisdiction for a period of sixty (60) days of all or 
substantially all of Airline's assets pursuant to proceedings brought under the provisions of any Fed- 
eral reorganization act. 

(d) The appointment of a receiver of all or substantially all of Airline's assets and Airline's 
failure to vacate such appointment within sixty (60) days thereafter. 

(e) The assignment by Airline of its assets for the benefit of its creditors. 

20 



February 1, 1961 



REPORTS OF COMMITTEES 



4385 



(f) The abandonment by Airline of its conduct of air transportation at the Airport. 

(g) The default by Airline in the performance of any covenant or agreement required to be 
performed by Airline and the failure of Airline to remedy such default, or to take prompt action to 
remedy such default, within a period of sixty (60) days after receipt from City of notice to remedy 
the same. 

Termination by Airline 

Airline may not terminate its Leases or the Airport Use Agreement so long as any Approved Revenue 
Bonds are outstanding. 

SOURCES OF ESTIMATED ANNUAL GROSS REVENUE 

The following table shows the various sources of the annual gross revenue estimated by Landrum and 
Brown, Airport Consultants, for the years 1961 through 1965 and the actual figures, as furnished by the 
City, for the year 1959 and the City's estimate for 1960. 
Fixed Rentals 

Under Leases Flight Fees Total 

Including Ramp Concession Miscellaneous Excluding Ramp Gross 

Area Rentals Revenue Revenue Area Rentals Revenue 

1959 ~$ — $ 590,724 $332,432 $1,331,110 $ 2,254,266 

1960, est — 1,257,212 323,759 1,460,720 3,041,691 

1961 130,600 1,920,200 410,700 3,039,900 5,501,400 

1962 9,548,000 2,796,200 563,100 3,895,500 16,802,800 

1963 9,548,000 3,411,100 989,400 3,096,000 17,044,500 

1964 9,548,000 3,770,900 1,112,400 2,847,500 17,278,800 

1965 9,548,000 4,143,800 1,233,400 2,826,100 17,751,300 

ESTIMATED REVENUES AND OPERATION AND MAINTENANCE EXPENSES 
(Actual figures 1959 and the estimate for 1960) 

The following schedule shows the yearly total gross revenues for the years 1961 through 1965 based 
on the estimates of Landrum and Brown, Airport Consultants, as set forth in detail in their Summary Report 
appended hereto. Also shown are their estimates of the Operation and Maintenance Expenses and a 
calculation of the resulting net revenues available, in accordance with the order of priority of accounts 
set forth in the Ordinance, for debt service on the Bonds. Also shown are the Airport Consultants estimates 
as to the amounts to be allocated annually to the Reserve Maintenance Account and the Emergency Reserve 
Account after providing for any required deposits to the Interest Account or Debt Service Reserve Account 
and the Minimum Sinking Fund Payment. 

Fiscal Year Operation and Net Revenues Reserve Emergency 

Beginning Total Gross Maintenance Available for Maintenance Reserve 

January 1 Revenue Expenses Debt Service Account Account 

1959 $ 2,254,266 $1,507,711 ~$ 746,555 $ 20,000* $726,555* 

1960, est. .. 3,041,691 2,102.029 939,662 20,000* 919.662* 

1961 5,501,400 4,587,200 914,200 20,000 894,200 

1962 16,802,800 4,360,200 12,442,600 725,000 867,600 

1963 17,044,500 4,599,100 12,445,400 725,000 870.400 

1964 17,278,800 4,818,600 12,460,200 725,000 885.200 

1965** 17,751,300 5,102,100 12,649,200 725,000 893,200 

* Actual deposits made to the Reserve Maintenance and Emergency Reserve Accounts iu accordance with the 
provisions of the Ordinance. This does not incjude interest earned on the investment of the two accounts amounting to 

$5,240 in 1959 and $30,952 in 1960. By Ordinance such interest remains in these accounts and does not affect the amount 
to be transferred to said accounts in any fiscal year from Revenues. 

**The Airport Consultants have assumed that their estimates shown in each column for the fiscal year 1965 are reason- 
ably applicable through the fiscal year 1998. 

Under the terms of the Airport Use Agreement entered into between the city and the various Airlines, 
the Airlines covenant to use O'Hare Airport and agree to pay, in each fiscal year, sufficient Flight Fees for 
their fee landings, so that with revenues derived from fixed rentals payable under the Leases, from con- 
cessions and from any other source, the gross revenues at the Airport will equal the sum of Operation and 
Maintenance Expenses, the amounts to be allocated to the Reserve Maintenance and Emergency Reserve 
Accounts and, beginning in the fiscal year 1962, an amount equal to 1.25 times the Principal and Interest 
Requirements, as defined in the Ordinance, on the Approved Revenue Bonds outstanding at the beginning 
of such fiscal year, and the amount of any premiums paid on such Bonds retired by January 1 of the 
succeeding fiscal year. 



JOURNAL— CITY COUNCIL— CHICAGO 



February 1, 1961 



Landrum and Brown's estimates of traffic, revenues and expenses have been made with consideration 
of the Government's right to a limited free use, in common with others, of the Airport's public facilities. 

ESTIMATED COVERAGE OF DEBT SERVICE 

Chicago-O'Hare International Airport, Revenue Bonds 

$120,000,000, 4}4%, Series of 1959 

$25,000,000, 434%, Series A of 1961 

The following table has been prepared to show the estimated "net revenues" with relation to debt 
service as set forth in the Ordinance authorizing the $120,000,000 Chicago-O'Hare International Airport 
4%% Revenue Bonds, Series of 1959 and the Supplemental Ordinance authorizing the $25,000,000 Chicago- 
O'Hare International Airport 4)4% Revenue Bonds, Series A of 1961. Since the table reflects no accelerated 
retirement of bonds beyond the principal amounts to be retired, as provided in the Ordinance, through the 
annual Minimum Sinking Fund Payments, it does not purport to show for any particular year the interest 
which may be payable on bonds or the principal amount of bonds which may be retired, during that fiscal 

yCar ' $120,000,000 Series of 1959 $25,000,000, Series A of 1961 

Minimum Minimum Times 

Fiscal Year Estimated Sinking Sinking Total Debt 

Beginning Net 4%% Interest Fund % Interest Fund Debt Service 

January 1 Revenues Requirements(a) Payments Requirements(a) Payments Service Earned(b) 

1959 (actual $ 746,555 Capitalized 

1960 (Estimated) 939,662 Capitalized „ 

1961 914,200 Capitalized Capitalized 

1962 12,442,600 $5,700,000 $1,187,500 $6,887,500 1.81 

1963 12,445,400 5,700,000 1,187,500 6,887,500 1.81 

1964 12,460,200 5,700,000 1,187,500 6,887,500 1.81 

1965 12,649,200 5,700,000 $1,483,000 1,187,500 $ 309,000 8,679,500 1.46 

1966 12,649,200 5,629,557 1,553,000 1,172,822 324,000 8,679,379 1.46 

1967 12,649,200 5,555,790 1,627,000 1,157,432 339,000 8,679,222 1.46 

1968 12,649,200 5,478,507 1,704,000 1,141,330 355,000 8,678,337 1.46 

1969 12,649,200 5,397,567 1,785,000 1,124,467 372,000 8,679,034 1.46 

1970 12,649,200 5,312,780 1,870,000 1,106,797 390,000 8,679,577 1.46 

1971 12,649,200 5,223,955 1,959,000 1,088,272 408,000 8,679,227 1.46 

1972 12,649,200 5,130,902 2,052,000 1,068,892 427,000 8,678,794 1.46 

1973 12,649,200 5,033,432 2,149,000 1,048,610 448,000 8,679,042 1.46 

1974 12,649,200 4,931,355 2,251,000 1,027,330 469,000 8,678,685 1.46 

1975 12,649,200 4,824,432 2,358,000 1,005,052 491,000 8,678,484 1.46 

1976 12,649,200 4,712,427 2,470,000 981,730 515,000 8,679,157 1.46 

1977 12,649,200 4,595,102 2,588,000 957,267 539,000 8,679,369 1.46 

1978 12,649,200 4,472,172 2,711,000 931,665 565,000 8,679,837 1.46 

1979 12,649,200 4,343,400 2,839,000 904,827 592,000 8,679,227 1.46 

1980 12,649,200 4,208,547 2,974,000 876,707 620,000 8,679,254 1.46 

1981 12,649,200 4,067,282 3,116,000 847,257 649,000 8,679,539 1.46 

1982 12,649,200 3,919,272 3,263,000 816,430 680,000 8,678,702 1.46 

1983 12,649,200 3,764,280 3,418,000 784,130 712,000 8,678,410 1.46 

1984 12,649,200 3,601,925 3,581,000 750,310 746,000 8,679,235 1.46 

1985 12,649,200 3,431,827 3,751,000 714,875 781,000 8,678,702 1.46 

1986 12,649,200 3,253,655 3,929,000 677,777 819,000 8,679,432 1.46 

1987 12,649,200 3,067,027 4,116,000 638,875 857,000 8,678,902 1.46 

1988 12,649,200 2,871,517 4,311,000 598,167 898,000 8,678,684 1.46 

1989 12,649,200 2,666,745 4,516,000 555,512 941,000 8,679,257 1.46 

1990 12,649,200 2,452,235 4,730,000 510,815 985,000 8,678,050 1.46 

1991 12,649,200 2,227,560 4,955,000 464,027 1,032,000 8,678,587 1.46 

1992 12,649,200 1,992,197 5,191,000 415,007 1,081,000 8,679,204 1.46 

1993 12,649,200 1,745,625 5,437,000 363,660 1,133,000 8,679,285 1.46 

1994 12,649,200 1,487,367 5,695,000 309,842 1,186,000 8,678,209 1.46 

1995 12,649,200 1,216,855 5,966,000 253,507 1,243,000 8,679,362 1.46 

1996 12,649,200 933,470 6,249,000 194,465 1,302,000 8,678,935 1.46 

1997 12,649,200 636,642 6,546,000 132,620 1,364,000 8,679,262 1.46 

1998 12,649,200 325,707 6,857,000 67,830 1,428,000 8,678,537 1.46 

(a) Interest is capitalized, to and including payment of January 1, 1962 coupon. 

(b) Although estimated net revenues cover debt service as indicated, revenues can not be applied, over and above the 
amount of the annual Minimum Sinking Fund Payment, to the accelerated retirement of Bonds in any fiscal year, 
until the Reserve Maintenance Account and Emergency Reserve Account have been credited with their respective 
required amounts. 

22 



February 1, 1961 REPORTS OF COMMITTEES 4387 

ESTIMATED RETIREMENT OF BONDS 

If each fiscal year's net revenues, as estimated by Landrum and Brown, Airport Consultants, alter 
providing for the Minimum Sinking Fund Payments and the required deposits to the credit of the Debt 
Service Reserve Account, Reserve Maintenance Account and Emergency Reserve Account, were applied 
to the accelerated retirement of Bonds over and above the retirement of Bonds by means of the annual 
Minimum Sinking Fund Payments, it is estimated that the $120,000,000 Chicago-O'Hare International Air- 
port 4y 4 % Revenue Bonds, Series of 1959, and the $25,000,000 \y A °/o Revenue Bonds, Series A of 1961, 
could be retired by January 1, 1986. 

SUMMARY OF CERTAIN PROVISIONS OF BOND ORDINANCE 

The following information is summarized from the Ordinances adopted by the City Council on 
December 29, 1958 and on February 16, 1959, (both of which Ordinances are herein sometimes referred 
to as the "Ordinance") and from the Supplemental Ordinance adopted by the City Council on February 
1, 1961. Copies of the Ordinances and Supplemental Ordinances are on file with the City Comp- 
troller and the Depositary. 

. In accordance with the provisions of the Act, the Ordinance authorized the issuance by the City 
of $120,000,000 Chicago-O'Hare International Airport 4^% Revenue Bonds, Series of 1959. The Supple- 
mental Ordinance, in accordance with the provisions of Section 2.15 of the Ordinance, authorized 
$25,000,000 Chicago-O'Hare International Airport Revenue Bonds, Series A of 1961, and $10,000,000 
Revenue Bonds, Series B of 1961 and the sale of the $25,000,000 4^% Revenue Bonds, Series A of 1961, 
as the first issue of said authorization. The Ordinance designated The First National Bank of Chicago, 
Chicago, Illinois as Depositary, Paying Agent and Registration Agent. The Bonds, subject to the provi- 
sions for registration and transfer contained in the Ordinance, shall have all the qualities of negotiable 
instruments under the laws of the State of Illinois and may be registered as to principal or as to principal 
and interest. 

SECURITY FOR THE BONDS 

In accordance with the provisions of the Ordinance, the Bonds, Series A of 1961, rank on a parity 
with the outstanding 4^4% Revenue Bonds, Series of 1959, and are secured by a charge and lien on, and 
are payable solely from, the Bond proceeds and Net Revenues derived from the operation of the Airport 
and from any service rendered in the operation thereof as set forth in the Ordinance. All such Net Rev- 
enues and funds are exclusively and irrevocably pledged to and constitute a trust fund for the security and 
payment of the principal of and the interest and any redemption premium on the Bonds and any additional 
Bonds issued under the Ordinance. 

SURETY BONDS 

The City will take out and maintain or cause to be provided fidelity insurance or a fidelity bond or 
bonds covering all employees and officials of the City who receive or handle Revenues of the Airport ; in 
the case of employees in an amount sufficient to cover the maximum amount of Revenues so received or 
handled by each such employee during any calendar week. 

RECEIPT, DEPOSIT AND ALLOCATION OF REVENUES 

The Airport shall be operated on a fiscal year basis beginning January 1. All Revenues derived from 
the operation of the Airport and for any service rendered by the City in the operation thereof shall be 
held by the City and the Depositary in trust for the benefit of the holder or holders of the Bonds issued 
under the Ordinance and the coupons appertaining thereto and shall be allocated and applied solely to the 
uses and purposes set forth in the Ordinance and shall be accounted for separate and apart from all other 
moneys, funds or other resources of the City. 

Cbicago-O'Hare International Airport Revenue Fund 

The City covenants and agrees that all Revenues, including all rents, fees, rates or other charges shall 
be received, deposited and accounted for through a special fund created for such purpose and designated 

23 



4388 JOURNAL— CITY COUNCIL— CHICAGO February 1, 1961 

Chicago-O'Hare International Airport Revenue Fund (hereinafter referred to as the "Revenue Fund"). 
All moneys paid into the Revenue Fund shall be deposited by the City Treasurer with the Depositary. 
All Revenues so deposited shall be disbursed by warrants on the City Treasurer, signed by the Mayor and 
countersigned by the City Comptroller and all such moneys accounted for through the Revenue Fund 
during each fiscal year, shall be allocated first to Operation and Maintenance Expenses and then in the 
following order of priority to the following respective special accounts : 

Interest Account 

Debt Service Reserve Account 

Sinking Fund Account 

Reserve Maintenance Account 

Emergency Reserve Account 

Operation and Maintenance Expenses 

The City Comptroller shall draw warrants on the City Treasurer on the Revenue Fund to pay for oper- 
ation and maintenance of the Airport, but such warrants drawn with respect to any fiscal year shall not 
exceed the amount budgeted by the City for Operation and Maintenance Expenses for the then current fiscal 
year, unless such warrants cover expenditures authorized by a two-thirds vote of all members of the City 
Council. In addition thereto, a reasonable reserve for the next ensuing year (not in excess of one quarter 
of the amount budgeted for the current year) may be retained in the Revenue Fund. 

Allocation of Remaining Revenues 

The City Comptroller shall from time to time direct the Depositary to allocate the remaining available 
Revenues in the following manner and order of priority: 

First: Interest Account. There shall be allocated to such Account an amount equal to any unpaid 
interest then due on all outstanding Bonds, plus the interest to become due thereon on the next ensuing 
interest payment date other than interest which is to be paid from Bond proceeds (deposited in a 
separate account designated "Interest During Construction Account"). 

Second: Debt Service Reserve Account. Beginning with the fiscal year commencing January 1, 
1962, there shall be allocated to the Debt Service Reserve Account an amount not to exceed $3,279,000, 
in any fiscal year as regards the Bonds, Series of 1959, and an additional amount not to exceed $683,750 
as regards the Bonds, Series A of 1961, until there shall be accumulated in such Account for each respec- 
tive Series of Bonds an amount equal to two years' interest requirements on all Bonds outstanding of 
each said Series. All moneys in this Account shall be used and withdrawn to the extent necessary for the 
purpose of paying the interest, Sinking Fund payments and the principal of the Bonds including premiums 
for prior redemption thereof in the event no other funds are available for such purpose. Whenever, the 
deposits in the Debt Service Reserve Account exceed two years' interest on all Bonds outstanding, such 
excess shall be transferred to the Sinking Fund Account. Any moneys withdrawn to meet interest and 
Sinking Fund requirements shall be replaced out of the first money available therefor. 

The additional amount to be allocated to the Debt Service Reserve Account in any fiscal year with 
respect to additional Bonds issued to pay the cost of completing the Improvements, referred to in 
Section 2.15 of the Ordinance, and the amount to be allocated respecting additional Bonds issued for 
further improvements and extensions to the Airport (as provided in Section 2.16 thereof) shall not 
exceed the amount specified in the Supplemental Ordinance or Ordinances authorizing the issuance 
of such additional Bonds. 

Third: Sinking Fund Account. Starting January 1, 1965, there shall next be allocated to the 
Sinking Fund Account, in each fiscal year, an amount sufficient to retire the principal amount of 
Bonds, as provided in the Ordinance and Supplemental Ordinance, by January 1 of the succeeding 
fiscal year,. which amount is referred to therein as the Minimum Sinking Fund Payment. The minimum 
annual payments to be made to the Sinking Fund Account, as provided in the Ordinance and Supple- 
mental Ordinance are calculated, for each series of Bonds outstanding thereunder, as sufficient to 
retire all Bonds of such series by its maturity date 

Fourth: Reserve Maintenance Account. Starting with the fiscal year commencing January 1, 1959, 
in each fiscal year to the Reserve Maintenance Account, out of the balance remaining after making 

24 



JOURNAL— CITY COUNCIL— CHICAGO 



February 1, 1961 




HICAGO METROPOLITAN AREA EXPRESSWAY SYSTEM SERVING CHICAGO - O' HARE INTERNATIONAL AIRPORT 



JOURNAL— CITY COUNCIL— CHICAGO 



February 1, 1961 




JOURNAL— CITY COUNCIL— CHICAGO 



February 1, 1961 



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JOURNAL— CITY COUNCIL— CHICAGO 



February 1, 1961 




ARCHITECTS' CONCEPTION OF CHICAGO-O'HARE INTERNATIONAL AIRPORT AT COMPLETION OF FIRST STAGE DEVELOI 

I POST OFFICE 

EXISTING TERMINAL) 8 TERMINAL BUILDING #8 U 

CONCOURSE BUILDING #3 9 CONCOURSE BUILDING #9 

11 FLYING TIGERS CARGO BUILDING 

12 FLIGHT KITCHENS BUILDING 
S INCLUDED IN REVENUE BOND ISSUE. 



TERMINAL BUILDING jj 



BUILDING #6 



MAINTENANCE BUILDINl 
HEATING & AIR CONDI 1 
TELEPHONE BUILDING 

AUTOMOBILE SERVICE S 



'MENT 

IMOUSINE PARKING AREA 

AXI PARKING AREA 

MTERIM INTERNATIONAL BUILDING 

XISTING BASE OPERATOR HANGAR 



JOURNALS-CITY COUNCIL— CHICAGO 



February 1, 1961 



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BuiU.ng / 

luilding #B 




JOURNAI^CITY COUNCIL-CHICAGO 



February 1, 1961 




February 1, 1961 REPORTS OF COMMITTEES 4389 

any required deposits in such year to the Interest Account, the Debt Service Reserve Account and 
the Sinking Fund Account the sum of $20,000 in each fiscal year through the fiscal year 1961 and 
the sum of $725,000 in each fiscal year thereafter, until there shall have been accumulated in the 
Reserve Maintenance Account the sum of $3,020,833.33 ; provided, however, that if less than the amount 
required to be deposited in this Account in any fiscal year shall be so deposited, the requirement there- 
for shall nevertheless be cumulative and the amount of such deficiency shall be added to the amount 
required to be deposited in this Account in each fiscal year thereafter, until such time as such deficiency 
shall have been made up or until there shall have been accumulated in this Account the sum of 
$3,020,833.33. 

If additional Bonds are issued under the respective provisions of the Ordinance, the applicable 
limits as to the maximum amount which shail be deposited in any fiscal year and the maximum 
amount which shall be accumulated in said Account shall be increased in accordance with the provisions 
contained in the Ordinance. 

Moneys held for the credit of the Reserve Maintenance Account shall be held as a reserve for the 
purpose of paying the cost of major repairs, renewals and replacements of terminal buildings, landing 
areas, aprons, and related facilities, equipment or otherwise, at the Airport, provided the making of 
such repairs, renewals or replacements is approved by the Consulting Engineer, as evidenced by his 
certificate, and in the case of an insufficiency of moneys to pay the Operation and Maintenance Ex- 
penses, all expenses chargeable as Operation and Maintenance Expenses under the terms of the 
Ordinance; and shall be disbursed only for such purposes, except as otherwise provided in the 
Ordinance. 

If at any time the amount in the Interest Account and the Debt Service Reserve Account shall be 
insufficient for the purposes of paying the interest on the Bonds as such interest becomes due, or for 
the purpose of making any of the required payments to the Sinking Fund Account, then the City shall 
transfer from the Reserve Maintenance Account to the Interest Account, Debt Service Reserve Account 
or Sinking Fund Account, as the case may be, an amount sufficient to make up any such deficiency. 

Any moneys in the Reserve Maintenance Account which shall be used or transferred as aforesaid, 
shall be restored by the City from the first available moneys in the Revenue Fund, subject to the same 
conditions as are hereinabove provided for deposits to the credit of this Account. 

Fifth: Emergency Reserve Account. There shall be allocated to the Emergency Reserve Account 
out of the balance remaining, after making the deposits to the respective accounts hereinabove referred 
to, an amount in each fiscal year equal to the sum of the amounts included in Airport Expense as 
defined in the Airport Use Agreement for such year on account of the depreciation and interest on 
City investment in the Airport, other than from Government Grants in Aid or Approved Revenue 
Bond proceeds. 

Moneys held to the credit of the Emergency Reserve Account shall be used to the extent provided 
in the Ordinance in lieu of abated rentals, and to the extent so used shall be treated as Revenues, for 
any period of time during which the Airport may be closed, by any order or direction of City or any 
other governmental authority or agency, or by any order or direction of any court of competent juris- 
diction, for the landing or taking off of all turbo jet powered aircraft operated by Airline Parties, as 
defined in the Airport Use Agreement, which at the time are landing and taking off, in the course of 
normal operations, at one or more airports having facilities similar to those at the Airport. Moneys 
to the credit of the Emergency Reserve Account shall be applied monthly and be so used to the 
aggregate extent, and only to such extent, that agreements between the City and such Airline Parties 
provide for the abatement of rentals in the event of such closing. 

Moneys held to the credit of the Emergency Reserve Account shall also be used at any time for 
the purpose of making required deposits to the Interest Account and Sinking Fund Account when 
there are no other funds available for such deposits. 

Sixth: To the extent that Revenues accrued during each fiscal year, as shown in the audited 
statement of the Independent Certified Public Accountants, exceed Airport Expense for such fiscal 
year, as defined in the Airport Use Agreement, such excess shall be considered deferred income and as 
Revenues of the next succeeding year for all purposes of the Ordinance. 

25 



4390 JOURNAL— CITY COUNCIL— CHICAGO February 1, 1961 

All Revenues accrued during the fiscal year for which such audited statement is rendered, which 
Revenues have not been allocated for Operation and Maintenance Expenses, nor deposited or allocated 
for deposit in the several Accounts referred to in First through Fifth inclusive above, nor considered 
Revenues of the next succeeding fiscal year, shall be allocated to the Sinking Fund and deposited 
therein as soon as practicable. 

Notwithstanding the foregoing, in any fiscal year in which the minimum Flight Fee is in effect as 
provided in the Airport Use Agreement, all Revenues accrued during such fiscal year in excess of the 
required allocations to Operation and Maintenance Expenses and the Accounts provided for in First 
through Fifth inclusive, above shall be allocated to the Sinking Fund. 

If and when there are sufficient funds in the Interest Account, Debt Service Reserve Account and 
Sinking Fund Account at any time to call and redeem all of the outstanding Bonds at the next succeeding 
redemption date, said funds shall be used for that purpose. 

If the City shall comply with all other provisions of the Ordinance relating to the allocation of 
Revenues, the fact that the total deposits to be credited to the Sinking Fund Account, the Reserve Main- 
tenance Account or the Emergency Reserve Account in any fiscal year shall be less than the amount 
required will not constitute an event of default under the provisions of the Ordinance. 

SECURITY FOR DEPOSITS 

The City Comptroller is authorized and empowered to take all necessary steps to require and secure 
from each Depositary, Paying Agent and Fiscal Agent, security, if any, required by law for all Revenues 
and other funds deposited with or held by such agents under the Ordinance. 

INVESTMENT OF REVENUES 

All moneys held by the Depositary in the Revenue Fund may be invested in direct obligations of the 
United States of America which shall mature or which shall be subject to redemption by the holder thereof 
at the option of such holder prior to the date such funds shall be required for the payment of Operation 
and Maintenance Expenses or for allocation to any Accounts. All moneys held by the Depositary to the 
credit of the Interest Account and Sinking Fund Account shall be invested, insofar as may be practicable, in 
direct obligations of the United States of America which shall mature or which shall be subject to 
redemption by the holder thereof at the option of such holder not later than fifteen days prior to the date 
such funds shall be required for the purposes of the respective Accounts. Moneys held by the Depositary 
for the credit of the Debt Service Reserve Account, Reserve Maintenance Account and Emergency Reserve 
Account shall be invested in direct obligations of the United States of America which shall mature or which 
shall be subject to redemption by the holder thereof at the option of such holder not later than five years 
from the date of purchase thereof. 

Obligations purchased as an investment of moneys in the Revenue Fund or any Account named in the 
preceding paragraph shall be deemed at all times to be a part of such Fund or Account. The interest 
accruing thereon and any profit realized or loss resulting from the investment of moneys in the Reserve 
Maintenance Account or Emergency Reserve Account shall be, respectively, credited or charged to such 
Fund or Account, notwithstanding the fact that the amounts credited to the Reserve Maintenance Account 
exceed the maximum provided by the Ordinance. Interest accruing on and any profit realized from any 
investment of moneys in the Interest Account, Debt Service Reserve Account, Sinking Fund Account and the 
unallocated portion of the Revenue Fund shall be credited to the unallocated portion of the Revenue Fund 
and allocated as Revenues in the order of priority provided in the Ordinance and any loss resulting from 
any such' investment shall be deemed an Operation and Maintenance Expense and be restored to such 
Accounts or Fund from the first available Revenues. 

CUSTODY AND APPLICATION OF PROCEEDS OF BONDS 

Disposition of Bond Proceeds 

All proceeds received from the sale of the Bonds, Series of 1959, were deposited with the Depositary 
in trust. The Depositary credited such proceeds to the "Chicago-O'Hare International Airport Construction 



February 1, 1961 REPORTS OF COMMITTEES 4391 

Fund". The moneys in such Fund, pending their application as provided in the Ordinance, shall be subject 
to a lien and charge in favor of the holders of the Bonds until paid out or transferred as in the Ordinance 
provided and shall be accounted for as follows : 

(a) There shall first be set aside in the "Interest During Construction Account" (in the Construc- 
tion Fund) the amount required for paying the interest on such Bonds, Series of 1959, up to and 
including January 1, 1962. 

(b) The balance of the proceeds shall be set aside and accounted for in two separate accounts to 
be designated respectively, as "Hangar Construction Account" and "General Construction Account". 
The amount to be deposited in the Hangar Construction Account shall be sufficient to cover the total 
estimated cost of construction of all hangars on hangar sites and The Flying Tiger Line, Inc. cargo 
building. The remaining proceeds shall be deposited in the General Construction Account. The Im- 
provements, excluding the hangars (and such cargo building as referred to above) are sometimes 
referred to in the Ordinance as the "General Facilities". 

For the purposes of the following paragraph and as stated in Section 3.01 of the Ordinance, The 
Flying Tiger Line, Inc. cargo building shall be considered as a hangar and such site shall be considered 
a hangar site. 

Funds credited to the Hangar Construction Account shall be held and used solely for the construction 
of hangars on hangar sites according to such plans and specifications, and any modifications or alterations 
thereof ; provided, however, that such funds shall not be used for the construction of a hangar on any one 
hangar site in excess of the proportion of such funds that the estimated construction cost of such hangar 
bears to the total estimated construction cost of all hangars on hangar sites. It is also provided that the 
full amount of funds to the credit of the Hangar Construction Account, available under the foregoing 
provisions for the construction of a hangar on any one hangar site, shall be transferred from the Hangar 
Construction Account to the General Construction Account, if at the end of a period of 27 months after 
the date of sale of the Bonds, Series of 1959, no contract shall have been let by the City for the construction 
of any such hangar. It is further provided that any portion of such funds so to the credit of the Hangar 
Construction Account and available for the construction of a hangar on any one hangar site, which on the 
date of completion of such hangar (giving effect to any modifications or alterations of such plans and 
specifications), as certified by the Consulting Engineer, shall not have been used or obligated for the 
construction of such hangar, shall be transferred from the Hangar Construction Account to the General 
Construction Account. 

Funds so transferred to the General Construction Account shall, except as otherwise provided in the 
Ordinance, be used solely for the purpose of constructing the General Facilities. 

After the General Facilities have been completed, as evidenced by the certificate of the Consulting 
Engineer, and if any balance remains to the credit of the General Construction Account, such balance may 
in the discretion of the City, in whole or in part, be deposited in the Sinking Fund Account or may remain 
to the credit of the General Construction Account available for use solely for the purpose of constructing 
additional improvements to the Airport recommended by the Consulting Engineer and approved by the 
Commissioner of Aviation and the City Council as being desirable for the purpose of meeting operational 
requirements in connection with the landing and take-off of aircraft at the Airport. Any such recommended 
additional improvements shall be construed in accordance with plans and specifications approved by the 
Consulting Engineer and the Commissioner of Public Works; provided, however, that any balance 
remaining to the credit of the General Construction Account on a date six months prior to the first date 
on which any Bonds shall be redeemable through the use of moneys in the Sinking Fund Account and for 
which no commitments shall have been made for the purpose of constructing such recommended additional 
improvements, shall be deposited in the Sinking Fund Account. 

All proceeds received by the City from the sale of Bonds, Series A of 1961, or any additional Bonds 
issued to complete construction of the Improvements, pursuant to the provisions of Section 2.15 of the 
Ordinance, shall be applied by the City as follows : 

(a) If such Bonds are issued prior to January 1, 1962, the City Comptroller shall deposit with the 
Depositary in the Construction Fund for credit to the Interest During Construction Account an 
amount sufficient to pay the interest payable on such Bonds up to and including January 1, 1962, and 

27 



4392 JOURNAL— CITY COUNCIL— CHICAGO February 1, 1961 

the balance of said proceeds shall be deposited with the Depositary in the Construction Fund and 
credited to the General Construction Account. 

(b) If such Bonds are issued on or after January 1, 1962, there shall be deposited with the 
Depositary in the Construction Fund and set aside therein in the General Construction Account all 
proceeds from the sale of such Bonds, except any accrued interest received thereon, which accrued 
interest shall be deposited in the Interest Account. 

Proceeds of such additional Bonds credited to the General Construction Account shall be used solely for 
the purpose of completing the construction of the General Facilities, and after the General Facilities have 
been completed, (as evidenced by the certificate of the Consulting Engineer) any balance of such proceeds 
remaining to the credit of the General Construction Account shall be deposited in the Sinking Fund Account. 

Proceeds received by the City from the sale of Bonds issued for additional improvements and exten- 
sions to the Airport pursuant to the provisions of Section 2.16 of the Ordinance shall be applied by the 
City in the manner and for the purposes provided in the Supplemental Ordinance authorizing such Bonds. 

All transfers or disbursements from the Construction Fund shall be made by warrants on the City 
Treasurer signed by the Mayor and countersigned by the City Comptroller and except for the transfers 
and disbursements from the Interest During Construction Account, shall be accompanied by a statement 
by the Commissioner of Public Works which shall include with respect to each payment: 

(a) Item number thereof. 

(b) Name of person, firm or corporation to whom payment is due. 

(c) Amount to be paid and the Account to which the item is to be charged. 

(d) A statement that the obligations in the specified amounts have been incurred by the City ; 
that each item thereof is a proper charge against the Construction Fund and that it has not been paid. 

(e) That there has not been filed with or served upon the City any notice of any lien, right to lien, 
or attachment upon or claim affecting the right to receive payment of any of the moneys payable to 
any of the persons, firms or corporations named in such order which have not been released or will 
not be released simultaneously with the payment of such obligations, and in the event that any 
"assignment of right to receive payment has been made and notice thereof has been given to the City 
and the City has accepted such assignment, the order directing payment shall recite that fact and 
direct the payment to be made to assignee thereof as shown by the records of the City. 

In addition, for any payment from the Construction Fund for work done in connection with the construction 
of any improvements, there shall be an accompanying certificate executed by the Consulting Engineer of 
the character required by the Ordinance. 

Investment of Bond Proceeds 

The funds to the credit of the Construction Fund shall, as nearly as may be practicable, be continually 
invested and re-invested in direct obligations of the United States of America which shall mature or which 
shall be subject to redemption by the holder thereof at the option of such holder not later than the respective 
dates as estimated by the City Comptroller and approved by the Consulting Engineer when such moneys 
will be required for the purposes intended. It shall be the duty of the City Comptroller to file with the 
Depositary from time to time the estimated dates when such funds will be required as approved by the 
Consulting Engineer and to direct the Depositary to invest the moneys to the credit of the Construction 
Fund. 

Obligations so purchased as investments shall be deemed at all times a part of the Construction Fund 
and interest accruing thereon and any profit realized or any loss resulting from such investments shall be 
respectively credited or charged to the General Construction Account. 

PURCHASE- AND REDEMPTION OF BONDS 

Moneys in the Sinking Fund Account shall be applied as rapidly as possible to the retirement of Bonds 
by purchase in the open market or by tender at prices not to exceed the redemption price of such Bonds 
on the next redemption date. The retirement of Bonds in any fiscal year shall be prorated between the 

28 



February 1, 1961 REPORTS OF COMMITTEES 4393 

Series of 1959, the Series A of 1961 and any additional series of bonds issued pursuant to the provisions 
of Section 2.15 or Section 2.16 of the Ordinance in proportion to the respective Minimum Sinking Fund 
payment for each series for such fiscal year. 

If there is $50,000 or more in said Account seventy days prior to any interest payment date on which 
Bonds are redeemable, such funds shall be used to redeem Bonds on such redemption date. 

COVENANTS AS TO RENTS, FEES, RATES AND OTHER CHARGES 

The City covenants that prior to the issuance of the Bonds authorized by the Ordinance, it will fix and 
place in effect rents, fees, rates and other charges for the use of the Airport including any services rendered 
by the City in the operation thereof, and an initial schedule of fees, rates and other charges that from 
time to time will be adjusted, in order that the Revenues of the Airport will be sufficient at all times to 
provide funds for the payment of the cost of operation and maintenance and thereafter to make the required 
deposits to each of the following accounts: (a) the Interest Account; (b) the Debt Service Reserve 
Account; (c) the Sinking Fund Account; (d) the Reserve Maintenance Account; and (e) the Emergency 
Reserve Account. Provided, however, that so long as any Bonds, Series of 1959 and Series A of 1961, or 
any "additional Bonds issued pursuant to Section 2.15 of the Ordinance shall be outstanding, such schedule 
shall in each fiscal year, commencing with the fiscal year beginning January 1, 1962, be sufficient to produce 
together with rents and other available Revenues, Net Revenues of not less than (i) one and twenty-five 
hundredths times the sum of the Principal and Interest Requirements for each such fiscal year of then 
outstanding Bonds, Series of 1959 and Series A of 1961, and any additional Bonds issued pursuant to 
Sections 2.15 or 2.16, plus (ii) amounts which may be required to be deposited in such year in the Reserve 
Maintenance Account and the Emergency Reserve Account and premiums paid on July 1 of such fiscal 
year and January 1 of the succeeding fiscal year on the redemption of such Bonds and premiums paid on 
such Bonds purchased during such fiscal year in the open market or by tender. 

A deposit to the credit of the Sinking Fund Account in any fiscal year of an amount in excess of the 
Minimum Sinking Fund Payment for such fiscal year shall not reduce the required Minimum Sinking Fund 
Payment for any subsequent fiscal year or years ; but any deficiency in the amounts deposited to the credit 
of the Sinking Fund Account and the Reserve Maintenance Account in any fiscal year shall, as promptly as 
practicable, be added to the amounts required for the remaining fiscal years. 

The City covenants, that, so long as any Bonds issued under the provisions of the Ordinance are 
outstanding, it will not amend any Lease or Airport Use Agreement relating to the Airport, entered into 
by it which became effective immediately upon the issuance of Bonds, Series of 1959, so as to reduce the 
fixed rentals, or the amount of Revenues which otherwise would be received from the application of the 
Flight Fee formula or the Flight Fee deficiency formula, below those provided under any such Lease or 
Agreement. 

ADDITIONAL BONDS 

The Ordinance provides that additional Bonds, ranking on a parity with the $120,000,000 Airport 
Revenue Bonds, Series of 1959, now outstanding, the $25,000,000 Revenue Bonds, Series A of 1961. now 
being issued, and the $10,000,000 Revenue Bonds, Series B of 1961, authorized but unissued may be issued 
for the following purposes and subject to the following conditions : 

(1) Additional Bonds may be issued in accordance with the provisions of Section 2.15 of the 
Ordinance to provide funds for the completion of construction of the Improvements, other than 
hangars, if the Consulting Engineer certifies that the moneys remaining in the General Construction 
Account in the Construction Fund at that time are insufficient for such purpose and that the proceeds 
from the issuance of such additional Bonds will be sufficient to pay the balance of the cost of such 
Improvements. 

Such additional Bonds shall be designated "Chicago-O'Ffare International Airport Revenue 
Bonds," with such further appropriate designation, shall be dated and bear such interest rate or rates 
(payable on January 1 and July 1 of each year) all as may be determined by the City Council, and 
shall mature on January 1, 1999, and be subject to the same right of prior redemption as the Bonds. 
Series of 1959, except as to redemption premium. 

29 



4394 JOURNAL— CITY COUNCIL— CHICAGO February 1, 1961 

(2) Additional Bonds may be issued under the provisions of Section 2.16 of the Ordinance for the 
purpose of constructing additional improvements and extensions to the Airport whenever the following 
conditions are met : 

(a) The amounts required to be credited to the Interest, Debt Service Reserve, Sinking Fund, 
Reserve Maintenance, and Emergency Reserve Accounts up to the date of adoption of the Supple- 
mental Ordinance authorizing such additional Bonds must have been credited to said Accounts. 

(b) The Net Revenues of the Airport from all existing facilities and those proposed to be 
financed by such additional Bonds, as estimated by the Airport Consultant, in accordance with 
the provisions of the Ordinance, for each fiscal year, commencing with the first full fiscal year 
following the date of completion, as estimated by the Consulting Engineer, of the additional 
facilities then being financed, and ending not earlier than the last full fiscal year next preceding 
the maturity date of any outstanding Bonds, Series of 1959 and Series A of 1961, or any addi- 
tional Bonds issued under the provisions of Section 2.15, shall be not less than, (i) one and 
twenty-five hundredths times the sum of the Principal and Interest Requirements for each such 
fiscal year of all Bonds then outstanding and the proposed additional Bonds, plus (ii) amounts 
which may be required to be deposited in each such year in the Reserve Maintenance Account 
and the Emergency Reserve Account. 

(c) The rentals, from Leases in effect between the City and air transportation companies on 
the date of adoption of the Supplemental Ordinance authorizing such additional Bonds, shall, as 
determined in accordance with the provisions of the Ordinance, commencing with the first full 
fiscal year following the date of completion referred to in (b) above and ending not earlier 
than the last full fiscal year net preceding the maturity date of any outstanding Bonds, Series 
of 1959 and Series A of 1961, and of any additional Bonds issued under the provisions of Sec- 
tion 2.15, be not less than one and ten-hundredths times the sum of the Principal and Interest 
Requirements for each such fiscal year of all Bonds then outstanding and the proposed additional 
Bonds. 

Such additional Bonds shall be designated "Chicago-O'Hare International Airport Revenue 
Bonds," with such further appropriate designation, shall be dated, bear such interest rate or rates 
payable January 1 and July 1 of each year, shall mature on January 1, and may or may not be 
subject to redemption prior to maturity, all as may be provided by the supplemental ordinance 
authorizing their issuance. Such additional Bonds must be due and payable* not earlier than the 
maturity date of any then outstanding Bonds. 

For the purpose of making the computations and estimates hereinabove provided for, the term 
"Principal and Interest Requirements for each such fiscal year" shall mean the following amounts, 
computed as nearly as practicable in accordance with standard amortization tables of equal annual 
payments to discharge a debt with interest, without regard to redemption premium: 

(i) In the case of Bonds, Series of 1959 and Series A of 1961, the amount which is required in 
each fiscal year to provide over a period of thirty-four fiscal years for the payment, when due, of the 
interest on such Bonds and for the retirement of all such Bonds by the end of such period ; 

(ii) In the case of any additional Bonds issued pursuant to Section 2.15, the amount which is 
required in each fiscal year to provide over a period of the lesser of thirty-four fiscal years or the 
number of full fiscal years between the date of delivery of such Bonds and the maturity thereof, 
for the payment, when due, of the interest on such Bonds and for the retirement of all such Bonds 
by the end of such period; and 

(iii) In the case of any additional Bonds issued pursuant to Section 2.16 for the purpose of con- 
structing additional improvements and extensions, the amount which is required in each fiscal year to 
provide over a period commencing with the first full fiscal year beginning after the date, as estimated 
by the Consulting Engineer, of the completion of such additional improvements and extensions and 
ending with the last full fiscal year next preceding the maturity date of such Bonds, for the payment 
of the interest, when due, on such Bonds and for the retirement of all such Bonds by their maturity. 

30 



February 1, 1961 REPORTS OF COMMITTEES 4395 

OTHER COVENANTS 

The following are summaries of covenants of the City in regard to the subjects listed. Reference is 
made to the Ordinance for a complete list of covenants and their full details. The City agrees or covenants 
regarding each subject as follows : 

Prompt Construction 

That it will forthwith proceed to construct the Improvements and that it will complete such construction 
with all expedition practicable in accordance with plans and specifications or approved alterations thereof. 

Management 

That in order to assure efficient management and operation of the Airport and to assure the Bond- 
holders that the same will be economically and efficiently operated on the basis of sound business princi- 
ples, it will, while any of the Bonds are outstanding, operate and maintain the Airport under the direction 
of the Commissioner of Aviation or such other City department as the City Council may from time to 
time ordain. 

Maintenance and Operation 

That it will, at all times, use its best efforts to see that the Airport is operated and maintained in such 
manner that the operating efficiency thereof shall be of the highest character and so that all lawful orders 
of any governmental agency or authority having jurisdiction in the premises shall be complied with (pro- 
vided the City shall not be required to comply with any such orders so long as the validity or application 
thereof shall be contested in good faith). The City also will, out of Revenues, from time to time, duly 
pay and discharge, or cause to be paid and discharged, all taxes, assessments or other governmental 
charges lawfully imposed upon the Airport or any part thereof, or upon the Revenues, when the same 
shall become due, as well as any lawful claim for labor, materials or supplies, which, if unpaid, might 
by law become a lien or charge upon the Airport, or which might impair the security of the Bonds. 

Concessions 

That it shall operate the Airport in a manner so as to produce revenues from concessionaires of a 
nature and amount which would be produced by a reasonably prudent operator of an airport. 

Against Encumbrances or Sale of Airport Property 

That it will not create or permit the creation of any mortgage, lien or pledge on any City-owned per- 
sonal or real property or equipment, constructed, purchased or used in connection with the Airport and 
the operation thereof or upon any Revenues or other funds pledged or held' under the Ordinance, except 
as security for all Bonds issued thereunder, and that it will not permit the sale, or other disposition of 
the Airport, or any part thereof, but the City may sell or dispose of property no longer required for the 
use of, profitable to, or for the best interest of the City's operation of the Airport. 

The net proceeds from the sale of any such property acquired by funds derived from the sale of any 
Bonds issued pursuant to the Ordinance or from Revenues, as defined therein, shall be used for the purpose 
of replacing properties or equipment at the Airport, if necessary, or shall be deposited in the Sinking Fund 
Account during the period that such Bonds are outstanding. 

Consulting Engineer and Airport Consultant 

The City covenants that while any of the Bonds are outstanding, it will continuously employ a Con- 
sulting Engineer experienced in the field of construction and physical maintenance and operation of airports 
and facilities and an Airport Consultant experienced in the field of administration, maintenance and operation 
of airports and facilities thereof, each of whom shall have no financial or other interest in the ownership 
or operation of the Airport or any activity relating thereto, aside from their duties in their respective 
employed capacities. The Consulting Engineer and the Airport Consultant shall each be appointed by the 
Mayor, subject to approval of the City Council. 

The Consulting Engineer shall inspect the Airport and make reports on the physical condition thereof 
and advise and make recommendations to the City with respect to the proper physical maintenance of the 
Airport. Copies of each such report and recommendation shall be sent not later than one hundred twenty 
days prior to the commencement of each fiscal year to the Commissioner of Aviation. At least once each 

31 



4396 JOURNAL— CITY COUNCIL--CHICAGO February 1, 1961 

month the Consulting Engineer will prepare a progress report in connection with the construction of the 
Improvements. Copies of such progess reports shall be filed with the City and the Depositary and mailed 
to the Principal Underwriters and to the Bondholders requesting copies thereof. 

The Airport Consultant shall inspect the Airport and make reports to the City including advice and 
recommendations regarding the proper administration, maintenance and operation of the Airport, revisions 
necessary in fees, rates and other charges and a recommended budget for operation and maintenance 
expenses of the Airport. Copies of each report and recommendation shall be sent not later than one hun- 
dred twenty days prior to the commencement of each fiscal year, to the Commissioner of Aviation, the 
Comptroller and the Budget Director. It shall be the duty of the Airport Consultant in the preparation 
of the recommended budget to advise and recommend with respect to the foregoing matters for the fiscal 
year preceding the year budgeted and the ensuing fiscal year. The Airport Consultant shall attend all 
public hearings on the budget and shall also make recommendations at least sixty days prior to January 
1 and July 1 of each fiscal year as to fees for the landing of aircraft at the Airport during the six-month 
period commencing on each such January 1 and July 1 so that the Revenues will meet the requirements 
of the Ordinance. 

Budgets 

The Budget Director, according to law, shall, prior to the beginning of each fiscal year, prepare and 
file with the City Clerk a preliminary budget of operation and maintenance expenses of the Airport and 
proposed capital expenditures for the ensuing fiscal year. 

The City shall, after the receipt of the Budget Director's preliminary budget, prepare the budget ordi- 
nance in tentative form, which ordinance shall be made available to public inspection. At least one public 
hearing shall be held thereon before final adoption as the annual budget. 

The City shall not incur expenses for operation and maintenance of the Airport in any fiscal year in 
excess of the reasonable and necessary amount thereof nor expend or obligate itself to expend any amount 
for such fiscal year in excess of the amount provided therefor in the budget for such fiscal year as 
finally adopted unless such expenditure is authorized by a two-thirds vote of the City Council; pro- 
vided, however, the foregoing shall not be applicable to any provision for uncollectible accounts 
receivable. 

Audits and Reports 

That it will keep and provide accurate books and records of the total cost of the Improvements, of all 
Revenues received and collected from the Airport and of all expenditures relating to the operation, main- 
tenance and repair thereof. All such books and records shall be open at all times during business hours 
to the Depositary, to the Principal Underwriters and to the holder or holders of not less than ten per 
centum of the principal amount of Bonds then outstanding, or his or their representatives duly author- 
ized in writing. 

Within one hundred and twenty days after the close of each fiscal year, so long as any Bonds are out- 
standing, the City will prepare and file with the Depositary, Airport Consultant and the Principal Under- 
writers, a statement of the Revenues and expenditures of the Airport for such fiscal year and a balance 
sheet thereof, taken at the close of such fiscal year, accompanied by a certificate or opinion in writing of 
an Independent Certified Public Accountant of recognized standing selected by the City and satisfactory 
to the Depositary. A consolidated summary of such Revenues and of all expenditures and the balance 
sheet for the Airport shall be published by the City not later than one hundred and fifty days after the 
close of such fiscal year as provided in the Ordinance and copies of such summarized data, as so pub- 
lished, shall be delivered to the Depositary and Principal Underwriters and mailed to the Holders of 
Bonds requesting copies. All reports and other documents required under the Ordinance shall be 
available for inspection by Bondholders at the office of the City Comptroller. 

Insurance 

In addition to the fidelity insurance or fidelity bonds previously referred to under the heading Surety 
Bonds on page 23, the City will take out and maintain or cause to be taken out and maintained public 
liability insurance, builders risk insurance and so long as any of the Bonds are outstanding a so-called 
"fire and extended coverage policy or policies" on City-owned property at the Airport, to the fullest 
extent obtainable, which coverage, however, need not exceed 80% of the full insurable value thereof. 

32 



February 1, 1961 REPORTS OF COMMITTEES 4397 

All such policies shall be issued by a responsible insurance company or companies and shall name 
the City as an insured thereunder and such policies or certificates of such insurance shall be deposited 
with the City Comptroller. 

The public liability insurance shall be in an amount of not less than $200,000 for injuries, including 
death, to any one person, and, subject to the same limitation for each person, in an amount of not less 
than $3,000,000 for injuries or death to two or more persons on account of any one accident in connec- 
tion with the operation of the Airport. 

Other details regarding the receipt and deposit of proceeds paid to the City for damage or destruction 
of City-owned property at the Airport or under other claims covered by insurance and the City's covenants 
regarding the application of any such insurance proceeds paid to the City are set forth in Section 6.07 of 
the Ordinance. 

The City, in March of each year, shall deliver to the Depositary and mail to the Principal Under- 
writers a schedule signed by the City Comptroller of all insurance policies then in force relating to the 
Airport, including the names of the insurers, the amounts thereof and the property and risks covered 
thereby. 

Whenever the City shall fail to take out or otherwise provide for any insurance required under the 
Ordinance (either as to class of risks or amount thereof) which in the discretion of the Depositary is 
obtainable at reasonable cost and upon reasonable terms, or is deemed by the Depositary, upon advice 
of an independent insurance counselor, to be necessary or desirable in the interests of the holders of the 
Bonds, the Depositary, in its discretion, may effect such insurance in the name of the City and bill the 
City therefor. 

RIGHTS OF BONDHOLDERS 

The Ordinance defines the events of default, which include the failure to pay interest or principal when 
due, with a 30-day grace period for default in the payment of interest, as well as the failure to observe 
any other of the City's covenants and agreements in the Ordinance. 

The Ordinance also provides that the Depositary appointed thereunder shall act as Trustee to repre- 
sent the Bondholders in the matter of exercising and prosecuting on their behalf such rights and remedies 
as may be available to such holders under the provisions of the Bonds and the Ordinance as well as 
under the Act or other provisions of applicable law. The Depositary as Trustee may on its own initiative 
take such action as may seem appropriate to it, and upon the request in writing of the holders or 
registered owners of twenty per cent in principal amount of the Bonds then outstanding, and upon being 
furnished with satisfactory indemnity, shall take such action on behalf of the Bondholders as they may 
request. 

Such action by the Trustee or by the holder or registered owner of any Bond may be by suit at law or 
proceeding in equity to compel the observance by the City or City Council of any contract, agreement or 
covenant made by the City, to compel the City to perform any duties required to be performed for the 
benefit of the Bondholders as provided in the Ordinance and the Act and, to enjoin the City from taking 
any action in conflict with any contract or covenant with the Bondholders ; or by action or suit in equity to 
require the City Council and the City to account as if they were the trustee of an express trust, or enjoin 
any acts or things which may be unlawful or in violation of the rights of the Bondholders. However, no 
holder or registered owner of any Bond may institute suit for the appointment of any trustee in bankruptcy 
or receiver unless such holder or owner shall have given written notice of an existing default to the Trustee 
and furnished indemnity to the Trustee, and the Trustee shall have declined to take such action requested by 
the holders or registered owners of twenty per cent of the principal amount of the Bonds then outstanding. 
No remedy conferred thereby upon any holder of Bonds is intended however, to be exclusive of any other 
remedy but each such remedy is cumulative and in addition to every other remedy and may be exercised 
without exhausting and without regard to any other remedy conferred thereby. The Ordinance also 
appoints the Depositary as attorney-in-fact for the Bondholders. 

MODIFICATION AND AMENDMENT OF THE ORDINANCE 

The Ordinance and the rights and obligations of the City and of the holders and registered owners of 
the Bonds and coupons may be modified or amended at any time by ordinance supplemental thereto adopted 



4398 JOURNAL— CITY COUNCIL— CHICAGO February 1, 1961 

by the City Council pursuant to the affirmative vote at a meeting of Bondholders, or with the written con- 
sent without a meeting, of the holders of 66 2 /i% in principal amount of all of the Bonds then outstanding. 
No such modification or amendment shall extend the maturity of or reduce the interest rate on, or other- 
wise alter or impair the obligation of the City to pay the principal or interest or redemption premiums at 
the time and place and at the rate and in the currency provided therein of any Bond without the express 
consent of the holder or registered owner of such Bond, nor permit the creation by the City of any 
mortgage or pledge, or lien on the Airport, or upon any Revenues or other funds pledged or held there- 
under, nor reduce the percentage of Bonds required for the affirmative vote or written consent to 
an amendment or modification, nor, without the written assent thereto, modify any of the rights or 
obligations of the Depositary, the Fiscal Agent or any Paying Agent at the time acting thereunder. 

EXEMPTION FROM TAXATION 

In the opinion of counsel named below, interest on these Bonds is exempt from all Federal income 
taxes under existing statutes, regulations and court decisions. 

APPROVAL OF LEGAL PROCEEDINGS 

All legal proceedings in connection with the authorization and issuance of the Bonds by the City 
are subject to approval of Messrs. Chapman and Cutler, Bond Counsel to the City, and Messrs. Wood, 
King, Dawson & Logan, Bond Counsel to the Underwriters. Copies of the approving opinions of Counsel 
will be available at the time of delivery of the Bonds. 

MISCELLANEOUS 

All of the foregoing is intended as a summary of various provisions of the Act, the authorizing Ordi- 
nance, the Airport Use Agreement and the various Leases and the Engineering Reports, including the con- 
curring engineering data or opinions referred to therein. All such summaries are subject to the detailed 
provisions of those respective documents to which reference is hereby made. Copies of the Ordinances, the 
Supplemental Ordinance, the Act, the Airport Use Agreement, the various Leases and the reports of 
Naess & Murphy, Architects-Engineers, Landrum and Brown, Airport Consultants, and Coverdale & 
Colpitts, Consulting Engineers, are available for inspection at the office of the City Comptroller. 

There are appended to this Official Statement, a summary report by Naess & Murphy, Architects- 
Engineers and a summary report of Landrum and Brown, Airport Consultants. 

Very truly yours, 

CITY OF CHICAGO, ILLINOIS 

By: Richard J. Daley 
Mayor 

Approved as in accordance v/ith City Ordinances. 

John C. Melaniphy 
Corporation Counsel 

Approved : 

Alvin L. Weber 
City Comptroller 

George L. De Ment 
Commissioner of Public Works 

William E. Downes 
Commissioner of Aviation 

34 



February 1, 1961 REPORTS OF COMMITTEES 4399 

NAESS & MURPHY • ARCHITECTS • ENGINEERS 

224 SOUTH MICHIGAN AVENUE, CHICAGO 4, ILLINOIS 



January 17, 1961 



Mr. George L. DeMent 
Commissioner of Public Works 
City Hall 
Chicago 2, Illinois 

Chicago-O'Hare International Airport 
Additional Funds Necessary to Complete 
First Stage Development Program 

Dear Commissioner DeMent : 

Following the sale of the initial issue of $120,000,000 O'Hare revenue bonds in February 1959 
detailed engineering work for the first stage program commenced immediately in accordance with the 
outlines established in our engineering report of November 14, 1958. 

In order to expedite actual construction, however, the original program was broken down into 
many separate projects which best followed the sequence of construction operations rather than adhered 
to the broad categories of the initial report. Grading contracts, for instance, preceded contracts for 
utilities and pavement, and in some instances foundation and basement contracts were awarded while 
engineering was still in progress for upper floors. 

Since March 1959, detailed engineering has been completed for 36 separate projects, 8 relating to 
hangars and 28 to general construction items. Contracts for all, except 3 of the latter projects, which 
are currently awaiting bidding, have been awarded, and work is already far advanced and in some cases 
has been completed. 

The dollar value of hangar projects under construction totals $23,449,544. Cash disbursements for 
these projects through December 31, 1960 total $8,959,091. 

The dollar value of awarded general construction account contracts through December 31, 1960 totals 
$73,149,072. Cash disbursements through December 31, 1960 total $27,488,434. 

In the course of working out detailed engineering and construction during the past 22 months many 
problems were encountered which required some modification of the original outline program. For 
instance, later traffic analysis by Landrum and Brown, Airport Consultants, showed that volumes of 
automobile traffic entering and leaving the airport at peak periods made it advisable to construct a 
grade separation at the entrance to the parking lot. This resulted in other changes in the entrance 
roadway. 

In August of 1960, we submitted a report to you comparing actual construction costs with original 
estimates. This report took several weeks to prepare because, as previously explained, construction 
contracts followed construction sequence and did not relate directly to the originally programmed cate- 
gories. Early grading contracts, for instance, related to several programmed categories (i.e. taxiways. 
aprons and building projects). 

As a result of a study of comparative costs and an analysis of the remaining work, exclusive of 
hangars, it was evident that additional funds would be required to complete the first stage program. 

There are many reasons why additional funds have proved necessary. These were set forth in detail 
in our August report. 



4400 JOURNAL— CITY COUNCIL— CHICAGO February 1, 1961 

One factor contributing to the increase in cost has been the unforeseen expansion of traffic at 
the airport to the point where, for the last quarter of 1960, passenger volumes have exceeded those 
at Chicago-Midway Airport. This has resulted in many costly temporary and emergency measures to 
permit construction to proceed without undue interference with airport operations. Another factor con- 
tributing to increased costs has been an increase in airline requirements, particularly in electrical and 
mechanical work in the ramp operations areas. Several of the increases in airline requirements, how- 
ever, have been attended by increases of leased areas which will bring additional revenue. Very poor and 
variable soil conditions encountered on the airport have also increased construction costs. 

The large increase in funds required to complete the program is also due to the fact that preliminary 
work could not be developed in sufficient detail prior to the start of the program. For this reason condi- 
tions which were impossible to anticipate beforehand were not recognized in the early estimates. 

There have been some instances in which actual unit costs have been greater than estimated, but, 
for the most part, bidding has been very competitive and contracts generally have been awarded at 
figures below our final estimates prepared just prior to bidding. 

After announcement of our August report, advising of the need for additional funds, a large part 
of the next three months was spent reviewing all phases of the program with the airlines and their 
consultants. New cost estimates were prepared for the remaining items of work. These were the most 
comprehensive pre-construction estimates yet prepared for the O'Hare program. They were carefully 
re-examined by us with the airlines with a view to making all possible reductions. After a final review 
by the Airlines Top Committee and the City on January 4 and 5, 1961, agreements were reached with 
regard to modifications and clear cut definition was established for the final phase of the first stage 
program. 

Revised estimates indicate that total cost of the general facilities will be $110,632,654. Accordingly 
$33,016,139 of additional General Construction funds will be needed for completion. This includes a 
contingency of 10% on the remaining items of work. 

We anticipate that all of the work now under contract will be completed during 1961 and that the 
bulk of the remaining work will also be completed this year except for the restaurant building, the 
international building, certain portions of the parking lot and some areas of landscaping which cannot 
be completed until the middle of 1962. We expect that the new terminal Buildings will be in service by 
January 1, 1962. 

Following is a summary of O'Hare cost data covering General Construction Account work only 
(Exhibit A). All of the work mentioned in said Exhibit comes within the scope of the plans setting forth 
the first stage development program attached to and made a part of the Ordinance of December 29, 1958. 
For purposes of clarity and future budgeting control, it was agreed by the airlines and the City to sum- 
marize cost data by construction contract rather than by the categories of the original engineer's report 
of 1958. 

Since the construction cost of an airline's hangar in excess of the amount originally allocated for 
such hangar costs from the proceeds of the initial issue of $120 million Revenue Bonds, is made up through 
escrow deposits by said airline* and revenue bond financing is unaffected, we have omitted a review of 
hangar costs from this summary. 

Yours very truly, 

NAESS & MURPHY 
Charles F. Murphy 



♦ To date three airlines have made escrow deposits for an aggregate total of $649,034.65. 

36 



February 1, 1961 



REPORTS OF COMMITTEES 



SUMMARY OF O'HARE COST DATA 

Proceeds from sale of $120 million par value revenue bonds, March 2, 1959 

Allocation to accounts other than General Construction Account : 

Hangar Construction Account $30,470,000 

Interest During Construction Account 16,892,710 



Allocation to General Construction Account 

Financing costs of original bond issue to December 31, 1960(1).. 



Proceeds less financing costs 

Interest received in General Construction Account on investment of funds 

to January 1961 

Funds authorized by Chicago-O'Hare International Airport Revenue Fund 

budget for 1961 to bear the cost of items listed in footnote (2) 

FUNDS AVAILABLE FOR GENERAL CONSTRUCTION 



EXHIBIT A 

$118,277,833 

47,362,710 

$ 70,915,123 
412,287 

$ 70,502,836 

6,323,679 

790,000 

$ 77,616,515 



General Construction Contracts(3) 



% Construction 

Date of Construction Contracts Plus 

Contract Completed Change Orders 

Award to 12-31-60 To Date 



Estimated 
Balance 
of Costs 



NM-21 

RB-1 

RB-3 
RB-4 
RB-5 
RB-6 
RB-7 



RB-8 
RB-10 
RB-12 
RB-13 

RB-14 
RB-16 
RB-20 

RB-21 
RB-22 
RB-23 
RB-24 



RB-25 

RB-26 
RB-27 
RB-28 
RB-29 
RB-31 



First Extension to Runway 

14R-32L(4) 

Site Grading, Phase I 

Paving, Grading & Utilities 

Terminal Building Substructure 

Sixteen Fuel Tanks 

Foundations for Fuel Tanks 

Second Extension to Runway 
14R-32L and Outer Circular 
Taxiway (Revenue Bond portion 

of work only) 

Water Main & Sanitary Sewers 
General Facilities Tank Farm.... 

Refrigeration Equipment 

High Temperature Water Gen- 
erators 

Terminal Building Basements.... 

Concourse Bldgs. Superstruc 

Entrance Road & Site Improve- 
ments 

Joint Cargo Buildings 

Maintenance Building 

Balance of Fueling System 

Underground Electrical Man- 
holes & Ducts (Revenue Bond 

portion only) 

Water Supply River Cross- 
ing^) 

Water Main Extension(13) 

Utilities, Phase I 

Terminal Bldg. Superstructures 

Interim Paving & Roadway 

Restaurant Basement & Utility 
Tunnels 



3-30-59 
8-11-59 
8-12-59 
9-18-59 
10- 7 -59 



10- 7 -59 
10-15-59 
4- 8 -59 
4-14-60 

4-11-60 
1-12-60 
4-11-60 



9-29-60 
11-14-60 



100% 
100% 
99% 
99% 
100% 
100% 



100% 

100% 
99% 
50% 

70% 
99% 
29% 

78% 

15% 



; 82,191 
2,442,590 

4,063,222(5) $ 60,000(6) 
1,625,562 
474,000 
120,242 



1,855,064(7) 
1,256,213 
1,645,000 
283,477 

218,926 

866,116 

11,090,975 

5,986,735 

1,401,098(12) 

366,220 
5,124,879 



1,792.637 



870,000(8) 
200,000(9) 



50,000(101 
670,000(1 n 



8- 9 -60 


100% 


44.000 




7-25-60 


90% 


487,411 




9-16-60 


31% 


3,001.500 


100.000(141 


9-16-60 


20% 


18,366.000 




7-12-60 


100% 


34,961 





2% 



JOURNAL— CITY COUNCIL— CHICAGO 



February 1, 1961 



EXHIBIT A— (Continued) 
SUMMARY OF O'HARE COST DATA— (Continued) 

% Construction 

Date of Construction Contracts Plus Estimated 

Contract Completed Change Orders Balance 

General Construction Contracts(3) Award to 12-31-60 To Date of Costs 

RB-32 Heating & Refrigeration Plant 

Foundations 1-11-61 $ 796,834 

RB-33 Utilities, Phase II $ 1,855,500 

RB-34 Elevated Roadway 12-27-60 3,609,040(15) 

RB-35 Heating & Refrigeration Plant 

Superstructure 4,293,377 

RB-38 Fire Station 614,422 

RB-39 Heating & Refrigeration Plant 

Structural Steel 225,000 

RB-40 Secondary Electrical Switchgear 120,000 

A. (16) Apron and Taxiway Pavement.. 9,913,628 

B. Underground Electrical Duct 

System (Phase II) 169,068 

C. Terminal Buildings Seating, 

Signs and PA System 369,750 

D. Airfield Lighting (Phase I) 388,638 

E. Service Roads & Misc. Asphalt 

Pavement 707,300 

F. Restaurant Building Superstruc. 

(Revenue Bond Portion Only).. 2,089,388 

G. Parking Lot, Lower Level Road, 

Paving, Grading & Utilities 4,182,935 

H. Topsoiling and Seeding 241,000 

I. Loop Tunnel Piping 1,419,950 

J. Airfield Lighting (Phase II) 237,150 

K. Road Signs & Street Markers.... 281,480 

L. Landscaping 608,271 

M. Central Heating & Air Condi- 
tioning Control System 250,000 

N. Misc. Paving, Grading, Utilities 

& Demolition 981,055 

O. International Arrivals & Depar- 
ture Building 1,191,000(17) 

Total Construction Costs $67,793,393 $32,088,912 

Preliminary Planning 648,515(18) 

A/E Fees for Working Drawings (4%) 
and Supervision (l l / 2 %) total— 5^% 3,693,503(19) 1,764,890 

Engineering fees and other costs in con- 
nection with Contracts RB-25 and 
RB-26 28,996(13) 

Surveying and Materials Testing Esti- 
mated @ 1% 671,798(20) 320,889 

Miscellaneous Costs 312,867(21) 100,000(22) 

Contingency (recommended @ 10% of 

Balance of Construction Costs) 3,208,891 

Totals $73,149,072 $37,483,582 

110,632,654 

Estimated Additional Funds Required to 
Complete First Stage Program (17) $ 33,016,139 

38 



February 1, 1961 REPORTS OF COMMITTEES 4403 

EXHIBIT A— (Continued) 
NOTES: 

1. Financing costs of additional issue to be estimated by City Comptroller's office. 

2. Temporary Taxiways $21,000; Revisions to Control Tower Heating System $35,000; Misc. Electrical 
Work $236,000; Relocation of Temporary International Building $164,000; Airport Construction 
Clean Up $27,000; Temporary Measures to Facilitate Airport Operations $216,000; Expanded Weather 
Station $91,000. 

3. Contracts RB-2 (American Airlines Hangar) ; RB-9 (United Air Lines Hangar) ; RB-11 (Eastern Air 
Lines Hangar) ; RB-15 (Delta Air Lines Hangar) ; RB-17 (North Central Airlines Hangar) ; RB-18 
(Joint Water Reservoir) ; RB-19 (Trans World Airlines Hangar) ; RB-30 (Northwest-Braniff Hangar) ; 
RB-36 (Ozark Air Lines Hangar) ; RB-37 (Flying Tiger Cargo Building), are Hangar Account 
contracts and have been excluded from the review of General Construction Account work. 

4. Certain lighting work was not eligible for Federal or State aid and was included in the revenue bond 
financing. 

5. Of total contract to date $4,071,389, the Illinois Bell Telephone Company has contributed $8,167 plus 
engineering as their share of the cost. 

6. Change Orders not yet processed for work added including stabilizing earth beneath box culvert, 
hangar area drainage, adjustment for final earth quantities. 

7. Of total Revenue Bond portion to date $1,877,700, the Illinois Bell Telephone Company has contributed 
$22,636 plus engineering as their share of the cost. 

8. Change orders not yet processed for work added including: outer circular taxiway turn-offs to apron, 
additional hangar area grading toward completion of RB-1, placement and removal of safety embank- 
ment for winter operation '59- '60. 

9. Change order not yet processed for work added including: chlorinating equipment for water system, 
connection to existing reservoir for interim service, greater excavation and backfill quantities resulting 
from lowering water line to avoid interference with other utilities. 

10. Change orders not yet processed for adding electric feeders to motor generators to allow paving and 
other building changes. Costs for major changes to building #7 requested by TWA have not been 
included. Assumed these will be paid by TWA. 

11. Change orders not yet processed for utility tunnel added to contract, temporary roads, and parking 
lots, extension of utility tunnels and miscellaneous items for electric lighting and vaults. 

12. Low bid of $1,459,000. City negotiating deductions proposed by airlines (omit motorized door 
operators; omit j/3 apron lighting, and omit heating distribution ducts at overhead doors). Estimated 
saving over low bid : $57,902. 

13. All engineering and supervision of RB-25 and RB-26 by City. 

14. Change orders not yet processed for miscellaneous revisions to avoid existing utilities not shown on 
"as built" drawings. 

15. Low bid of $3,790,660. City negotiated deductions for changes as agreed with airlines (revised 
column design to omit hinge, drop girder at viaduct, omit soffit from canopy). Savings: $181,620. 

16. RB contract numbers not assigned until near bidding date. 

17. By agreement with airlines, City has removed approximately $400,000 from original estimate of 
$1,500,000 and assigned to elevated roadway to cover portion of roadway serving International Build- 
ing, leaving a balance of $1,100,000 for International Building. Additional $91,000 to provide expanded 
U. S. Weather Station covered by allocation from Chicago-O'Hare International Airport Revenue 
Fund budget for 1961 (see Note 2). Total: $1,191,000. 

39 



4404 JOURNAL—CITY COUNCIL— CHICAGO February 1, 1961 

EXHIBIT A— (Continued) 

18. Naess & Murphy $385,524; Landrum and Brown $83,932; James P. O'Donnell $49,999; James, 
Schaeffer & Schimming $112,386; Raymond Concrete Pile Co. $1,047; Soils Testing Services $15,628; 
Total: $648,515. 

19. No A/E fee taken on Contract NM-21 on which engineering was paid from other funds or on Con- 
tracts RB-25 and RB-26 which were engineered and supervised by City forces. Also subtracted is 
$3,080 for engineering fees contributed by Illinois Bell Telephone Company. 

20. Materials Testing and Surveying Costs to November 1960 : 

(Testing) Walter H. Flood Co. $8,766; The Flood Co. $4,052; Soils Testing Services $128,930; 
Testing Service Corporation $145,142; Pittsburgh Testing Laboratories $1,079; Flour City Orna- 
mental Iron Co. $8,500; (Surveying) James, Schaeffer & Schimming $269,570; Total testing and 
surveying $556,039. 

21. Miscellaneous Costs to November 1960: 

a. Aerial progress photographs and planemetric surveying (Chicago Aerial Industries) $44,793. 

b. Printing of special pay estimate forms for each construction contract (F. J. Nenning & Son Co.) 
$9,625. 

c. Coordination of work of other engineers (telephone, gas, electric distribution systems, pipe line 
and oil companies connections at tank farm), UAL and EAL hangars, FTL Cargo Building, 
(Naess & Murphy @ direct labor plus 75%) $99,455. 

d. Printing of additional plans and specifications for public bidding (Acme Copy Corp., Keuffel & 
Esser, Riley Printing Co., Eugene Dietzgen Co.) $36,429. 

e. Airport planning consultation (Landrum & Brown) $24,535. 

f. Weather Report Service (Murray & Trettel) $1,050. 

g. Special Studies : (Airport master plan, airline claim baggage and limo baggage studies and 
conveyor studies, flight kitchen studies, hotel location study, elevated parking deck study, 
departure board studies, loading bridge structural analysis) (Naess & Murphy @ direct labor 
plus 75%) $77,470. 

h. Miscellaneous (renderings, printing, photographs, etc.) $8,562. 
Total: $312,867. 

22. Estimated. 



40 



February 1, 1961 



REPORTS OF COMMITTEES 



LANDRUM AND BROWN 

309 VINE STREET 
CINCINNATI, OHIO 



January 23, 1961 



Mr. George De Ment 
Commissioner of Public Works 
City of Chicago 
City Hall 
Chicago 2, Illinois 



Dear Commissioner De Ment : 



In accordance with your request we have prepared this Traffic and Earnings letter report for Chicago- 
O'Hare International Airport. The pertinent findings, forecasts and criteria have been summarized in this 
letter from the detailed discussion of these as given in our comprehensive Traffic and Earnings Report 
prepared for the City and dated January, 1961. The studies and forecasts developed in this project are 
based, in a large measure, on the consultant's experience gained from close association with O'Hare 
International Airport development during the past two years. 

The following table contains a summary of the Revenues of the Airport, Operation and Maintenance 
Expenses, and the deposits to be made to the Reserve Maintenance Account, and the Emergency Reserve 
Account which have been forecasted for each of the years 1961 through 1965. The criteria section which 
follows the forecasts summary presents brief, general discussions of the methods used and the data upon 
which the forecasts were predicated. 



Total 
Forecast Airport 

Year Revenues 

1961 $ 5,501,400 

1962 16,802,800 

1963 17,044,500 

1964 17,278,800 

1965 17,751,300 



Operation 

and 

Maintenance 

Expense 


Reserve 

Maintenance 

Account 


Emergency 
Reserve 
Account 


$4,587,200 


$ 20,000 


$894,200 


4,360,200 


725,000 


867,600 


4,599,100 


725,000 


870,400 


4,818,600 


725,000 


885,200 


5,102,100 


725,000 


893,200 



This section is sub-divided into three parts in which are discussed briefly each major element of the 
criteria analyzed in the Traffic and Earnings Studies. 



4406 

Air Traffic 



JOURNAL— CITY COUNCIL— CHICAGO 



February 1, 1961 



Air traffic forecasts were developed as one of the bases upon which the projected levels of revenues 
and expenses were predicated. The pertinent air traffic categories consisted of aircraft landings, total 
landing weight and the number of enplaning air passengers. The landings and landing weight projections 
provide a basis for evaluating the Flight Fee rate and the ability of O'Hare to accommodate the fore- 
casted volumes The air passenger forecasts provided, in part, the basis upon which the concession revenues 
were predicated and the number of aircraft landings were estimated. 

Scheduled airline users are anticipated to account for the development of practically all of the air 
traffic volumes at O'Hare during the forecast period. For that reason the forecasted traffic volumes shown 
on the following table are for the scheduled airlines only. 

Number of Number of 

Forecast Enplaning Aircraft Total Landing 

Years Passengers Landings weight (M-lbs.) 

1959(A) 865,380 23,219 2,034,845 

1960(A) 2,422,701 57,786 6,307,859 

1961 3,200,300 87,950 10,103,605 

1962 3,715,100 101,750 12,444,025 

1963 4,319,300 117,950 14,967,855 

1964 4,789,300 130,600 17,160,840 

1965 5,276,500 143,650 19,536,400 



In the development of the air passenger forecast above, consideration was given to the demonstrated 
development of air passenger traffic for the total City of Chicago and the area economic profile and its 
relation to air transportation needs. Using the projected total Chicago passenger volume, the distribution 
of these volumes between O'Hare and Midway Airports was made based upon a market analysis study. 
This study consisted of determining the future distribution of the potential air passenger market for the 
total Chicago area, the relative convenience of each airport to the air passenger market, and the ability 
of each of the airports to handle the types of aircraft which would be in service during the forecast 
period, and relating each of these to establish the air passenger volumes that could reasonably be 
expected to be developed at O'Hare and Midway Airports. More detailed discussion of the studies under- 
lying this distribution of the traffic potential between airports will be found in our Traffic and Earnings 
Report of January, 1961. 

The studies supporting the forecasts of aircraft landings and landing weight give consideration to 
estimated air passengers, the types of aircraft which could be anticipated to serve O'Hare during the 
forecast period, the aircraft seating capacity, reasonable levels of aircraft passenger load factors, and the 
average weight of aircraft. These criteria were developed from the demonstrated experience to date, the 
airline aircraft fleet compositions today and those planned for the forecast period and the anticipated airline 
aircraft service mixes for Chicago-O'Hare International Airport. 



The capacity of O'Hare as planned can handle the anticipated volumes of aircraft operations by all 
users, including the military. 



February 1, 1961 REPORTS OF COMMITTEES 4407 

Revenues 

To facilitate comparisons with previous studies the forecasts are presented by major revenue sources 
as follows : 

Airport Revenues by Years 

Revenue 

Sources 1961 1962 1963 1964 1965 

Fixed Rentals, Excluding Ramp 

Area Rentals $ 130,600 $ 5,492,900 $ 5,492,900 $ 5,492,900 $ 5,492,900 

Fixed Ramp Area Rentals* -0- 4,055,100 4,055,100 4,055,100 4,055,100 

Concession 1,920,200 2,796,200 3,411,100 3,770,900 4,143,800 

Miscellaneous 410,700 563,100 989,400 1,112,400 1,233,400 

Variable Flight Fees* 3,039,900 3,895,500 3,096,000 2,847,500 2,826,100 

Total Airport Revenues $5,501,400 $16,802,800 $17,044,500 $17,278,800 $17,751,300 

* The sum of the Fixed Ramp Area Rentals and the Variable Flight Fees is the Flight Fee Revenue Requirement. 

THE FIXED RENTALS, excluding Ramp Area Rentals, are derived from the existing agreements 
between the airlines and the City of Chicago. The revenues from the pertinent agreements are listed on 
the fixed rental revenue table at the end of this section. All revenues from airline fixed rental sources begin 
on January 1, 1962, except from Hangar Site ground rentals which are anticipated to begin August 1, 1961, 
by the City's Architects and Engineers. 

THE FIXED RAMP AREA RENTALS were computed in accordance with the provisions of the 
Lease of Terminal Facilities which provides that Ramp Area Rentals be set at $2,408,424 based upon the 
original $120,000,000 of revenue bonds. To this $2,408,424 is to be added 1.10 times the debt service 
($1,497,000) on the additional $25,000,000 of revenue bonds or $1,646,700. Total Ramp Area Rentals then 
will be $4,055,124, ($2,408,424 plus $1,646,700). 

TOTAL NET CONCESSION REVENUES (net to the City of Chicago) are anticipated to range 
from $.60 to $.80 per enplaned passenger during the forecast period. These amounts were estimated giving 
consideration to the types of concession activities which it would be feasible to operate at Chicago-O'Hare 
International Airport during the forecast period and the space planned and available for such concession 
activities. In making the projections of net revenues, estimates were first made of the gross earnings 
potential of each individual concession and second, the percentage of gross concession revenues which the 
City could reasonably anticipate to receive from each of these activities. Major categories of concession 
activities include: 

Terminal Building 

1. Public Food and Drink 

2. General Merchandise 

3. General Concessions Activities 

4. Coin-Operated Devices 

Terminal Area 

5. Ground Transportation Activities 

6. Hotel/Motel Concession 

7. Flight Kitchen (In-Flight Catering) 

The majority of these concession revenues should be realized beginning January 1, 1962. Certain of these 
concession revenues are being developed in the present facilities. 



4408 JOURNAL— CITY COUNCIL— CHICAGO February 1, 1961 

MISCELLANEOUS REVENUES shown at the beginning of this section include estimated amounts 
from the following : 

Revenues from the fixed base operation (private and business owned aircraft facilities and 
services) will come from fixed rental of buildings and percentage fees on gross sales. These revenues 
are expected to continue throughout the forecast period at current levels except for increases provided 
in accordance with the agreement, and termination of usage of certain of the facilities. 

The City presently derives revenues from the sale of steam and water to certain airport tenants. 
It is anticipated that such utility sales will continue throughout the forecast period. 

Certain other buildings and area revenues will consist of rentals from the telephone exchange 
building site, rent-a-car maintenance and storage lots, the Post Office building site, rental of a residence, 
rental of control tower space and a pipeline right-of-way. The site rental revenues are predicated upon 
a charge of $.10 per square foot annually. 

The interest to be earned from the investment of funds in the Debt Service Reserve Account has 
been estimated by the City to range from $118,000 in 1963 to $356,000 in 1965. 

The City presently receives revenues from helicopter flight fees. This source of revenue is antici- 
pated to continue throughout the forecast period producing revenues commensurate with increases 
in helicopter aircraft traffic. 

The City anticipates putting into effect a landing fee charge of approximately $.30 per thousand 
pounds of landing weight for private and business owned aircraft. This fee is expected to be effective 
by about April, 1961. 

In addition to the fixed rentals from the airline terminal space, as specified in the Lease of 
Terminal Facilities, revenues will be realized from the rental of additional space which will be 
provided for airlines and other tenants. These revenues will amount to about $325,000 annually. 

Revenues will be received also from the rental of the existing terminal building and the temporary 
international arrivals building, from the existing joint air cargo space and the airlines temporary 
maintenance sites. These revenues are anticipated to terminate as the buildings are phased out in the 
completion of the new facility program. These will all be phased out prior to 1962 except the temporary 
international arrivals building which will be used until the end of 1962. The existing domestic terminal 
will be closed at the end of 1961, renovated during 1962 and re-opened as the new international terminal 
building in 1963. Revenues from the new international terminal building, starting in 1963, were based 
upon planned space and an average rental rate equal to that in the new domestic airline terminals. 

THE ANNUAL VARIABLE FLIGHT FEE REVENUES was determined as follows: 

(a) The total Airport Revenues, excluding Ramp Area Rentals, was subtracted from Airport Ex- 
pense to determine the Flight Fee Revenue Requirement. 

(b) The Ramp Area Rentals was then subtracted from the Flight Fee Revenue Requirement 
to determine the amount of the Variable Flight Revenues to be collected. 

CONTINGENT REVENUES are from possible sources in addition to those for which forecasts 
have been made. These might include additional concession activities which may be developed if space 
is available, if there is a request by a concessionaire, and if the City deems the concession to be required 
or desirable. Other contingent revenues which might be realized are from the sale of utilities to the air- 
lines and others in certain facilities and areas, non-scheduled airline landing fees and building site rentals. 
Because of the indefinite nature of such sources, forecasts have not been made of their revenue potential. 

44 



February 1, 1961 



REPORTS OF COMMITTEES 






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4410 JOURNAL— CITY COUNCIL— CHICAGO February 1, 1961 

Airport Expenses 

Airport Expenses at O'Hare consist primarily of two major categories: 

1, Operation and Maintenance Expenses 

2. Other Expenses 

OPERATION AND MAINTENANCE EXPENSES include direct costs of operation at O'Hare.. 
expenses allocated from the administration expenses of the Department of Aviation and other City depart- 
ments and a provision for doubtful accounts. All items of Operation and Maintenance Expense are included 
in the City's annual budget, except the provision for doubtful accounts. The budget expense classifica- 
tions were used as a convenient basis for forecasting these items of Operation and Maintenance Expense. 

In forecasting the direct budget expenses at O'Hare consideration was given to the number of per- 
sonnel required to properly staff and operate the facilities at the airport and the wage and salary rates 
which would be applicable during the forecast period. Materials, supplies, and services expenses were also 
forecasted in keeping with the amount which would be necessary to properly maintain and operate the 
planned facilities at the airport during the forecast period. These expense forecasts were predicated upon 
experience at other major airline airports, the indicated requirements of the airport management and the 
Department of Aviation, and the demonstrated experience of Chicago-O'Hare International Airport and 
the Department during the past two years of expanded operation. 

The allocated administrative expenses of the Department of Aviation were based on the total salary 
and non-salary expenses of the department and allocated between the airports in accordance with the 
methods currently approved for use by the Comptroller's Office and the City's Auditors. 

The expenses allocated from other City departments were based upon the anticipated amount of 
services which would be provided by these departments, adjusted to reflect anticipated increases in 
salaries and wage rates, and the costs of materials, supplies, and services during the forecast period. 

The estimated doubtful accounts expense was based upon the previous experience at Chicago-O'Hare 
International Airport and the amount of the reserve available to charge off such expenses. 

OTHER EXPENSES include the sum deposited to the Reserve Maintenance Account, depreciation 
on the assets acquired with City funds, amortization of engineering costs, interest on the City investment, 
the Principal and Interest Requirements (times 1.25) on the total Approved Revenue Bonds outstanding 
and premium expense on bond redemptions and purchases. 

The annual deposit to the Reserve Maintenance Account for 1962 through 1965 was increased over 
the $600,000 set for the original bond issue of $120,000,000 in the same proportion as the additional 
bonds ($25,000,000) bear to the original issue, as specified in the Revenue Bond Ordinance. The new 
annual amount will be $725,000 for 1962 through 1965. The $20,000 set originally for 1961 is not subject 
to this revision. 

The depreciation of assets acquired with City funds* has been estimated based upon a write-off of the 
cost of these assets in accordance with a schedule of depreciable lives used by the City Comptroller's 
Office. Approximately $4,300,000 of such assets are yet to be depreciated. 

The amortization of engineering costs* which had not been specifically capitalized as a part of the 
cost of individual facilities was estimated based on total costs of approximately $1,226,700 and a 25 year 
write-off period. This data was established by the City Comptroller and verified by the City's Auditors. 

The interest expense on the City's investment* was forecasted based on the estimated amount of the 
City's investment in each of the forecast years and the average interest rates on outstanding general 
obligation bonds of the City. The average rate varies each year throughout the forecast period increas- 
ing as the older, lower interest rate bonds of the City are retired. The average rate on the City's general 
obligation bonds are anticipated to vary from 3.00% to 3.50% during the period 1961 through 1965. 
The City's investment is expected to remain at about $18,000,000 during the forecast years. 

The total annual Principal and Interest Requirements of $8,680,000 is the sum of the $7,183,000 
Principal and Interest Requirements on the original $120,000,000 bond issue as given in the Official State- 
ment of February 15, 1959, and the $1,497,000 Principal and Interest Requirements for the additional 
$25,000,000 bonds as estimated by the City. In accordance with the provision of the Airport Use Agree- 

* Other than Government Grants in Aid, proceeds derived from the sale of Approved Revenue Bonds, or amounts 
charged to operation and maintenance expenses or the Reserve Maintenance Account under the Revenue Bond Ordinance. 



February 1, 1961 REPORTS OF COMMITTEES 4411 

ment 1.25 times the total annual Principal and Interest Requirements, or $10,850,000 (1.25 x $8,680,000), 
was used as an item of Airport Expense. 

The Airport Use Agreement and the Revenue Bond Ordinance provide that Airport Expense shall 
include premiums paid on the redemptions and purchase of revenue bonds. The estimates of the premium 
expense were set by the City. 

The following table shows a summary of the forecasted Airport Expense. 

Airport Expenses by Years 
Item of Expense 1961 1962 1963 1964 1965 

Operation and Maintenance Expense 

Personal Services $ 1,029,200 $ 1,498,500 $ 1,633,400 $ 1,716,400 $ 1,802,700 

Contractual Services 569,700 964,600 967,500 967,200 975,200 

Commodities 245,200 347,300 372,700 389,700 404,900 

Equipment 221,100 157,400 106,700 97,500 105,000 

Specific Purpose-Gen 2,484,700* 1,354,300 1,489,900 1.618,100 1,783.800 

Other** 37,300 38,100 28,900 29,700 30,500 

Total Operation and Maintenance 

Expenses $ 4,587,200 $ 4,360,200 $ 4,599,100 $ 4,818,600 $ 5,102,100 

Other Expense 

Reserve Maintenance 20,000 725,000 725,000 725,000 725,000 

Depreciation on City Assets*** 306,400 223,700 218,000 212,700 208,900 

Amortization of Engineering Costs***.... 49,100 49,100 49,100 49,100 49.100 

Interest on City Investments*** 538,700 594,800 603,300 623,400 635,200 

Principal and Interest Requirements 

(times 1.25) -0- 10,850,000 10,850,000 10,850,000 10,850,000 

Premiums on Bond Redemptions and 

Purchases -0- -0- -0- -0- 181,000 

Total Other Expenses $ 914,200 $12,442,600 $12,445,400 $12,460,200 $12,649,200 

Total Airport Expenses $ 5,501,400 $16,802,800 $17,044,500 $17,278,800 $17,751,300 

* Includes $790,000 of construction costs for temporary facilities, which costs are not to be borne by the General 
Construction Account and $60,000 of non-recurring expenses attendant to the opening of the new terminal facilities. 
** Includes Travel, Specific Purpose — Financial. Contingencies, and Provision for Doubtful Accounts. 
*** These items comprise the Emergency Reserve Account. 

SUMMARY 

The estimates contained herein are representative of reasonable operating results based upon two 
major airline airports serving the City of Chicago through 1965. The increase in non-airline revenues at a 
rate in excess of expenses may reasonably be anticipated through the period 1970 to 1975, however, after 
this period it would be more realistic to plan on a more consistent relationship between revenue and 
expense growth. The distribution of air service between the airports can substantially affect airport 
traffic and revenue projections. 

The Ramp Area Rentals and the variable Flight Fee revenues have been revised based on an additional 
$25,000,000 revenue bond issue in keeping with the agreements between the City of Chicago and the airlines. 
With the sale of additional revenue bonds, these revenue calculations will need to be revised. Other revenue 
estimates are based on the completion of all facilities in the first stage of development. 

The excellent cooperation of the individual departments of the City of Chicago, (particularly the 
Department of Aviation), the Architects and Engineers (Naess and Murphy) retained by the City, and the 
airline parties to the Airport Use Agreement has made the completion of this assignment easier. 

Respectfully submitted, 

LANDRUM AND BROWN, Airport Consultants 
John F. Brown 



JOURNAL— CITY COUNCIL— CHICAGO 



February 1, 1961 



City Council Informed as to Approval of ' 
Ordinance by Mayor. 

Honorable Richard J. Daley, Mayor, informed the 
City Council that the Supplemental Ordinance author- 
izing the issuance of an additional $35,000,000 Chi- 
cago-O'Hare International Airport Revenue Bonds 
and approving the sale of $25,000,000 of said bonds, 
was deposited in the office of the City Clerk imme- 
diately after the passage thereof by the City Council, 
and that it was thereupon transmitted by the City 
Clerk to the Mayor, and that it was approved and 
signed by the Mayor; and upon motion of Alderman 
Keane it was ordered that the record so show. 



Placed on File — Notifications to City Council as to 
Selections of Proxies to Affix Signatures of 
Mayor and City Comptroller to $25,- 
000,000.00 Chic ago-O'H are Interna- 
tional Airport Revenue Bonds. 

The City Clerk thereupon transmitted the follow- 
ing communications, which were Placed on File: 

Office of the Mayor 
City of Chicago 

February 1, 1961. 
To the Honorable, The City Council of the City of 
Chicago : 

Gentlemen — Please take notice that I have se- 
lected and do hereby designate J. J. Kelly as my 
proxy for me and in my name, place and stead to 
affix my signature as Mayor of the City of Chicago 
to the following 

$25,000,000 of Chicago-O'Hare International 
Airport Revenue Bonds 
Series A of 1961 
dated January 1, 1961 
due January 1, 1999 
in denominations of $1000 
each, numbered as follows : 
M-120001 - M-145000. 
Appended hereto is a written signature as my 
name is to appear on the said bonds, executed by 
the said J. J. Kelly, with the proxy's own signature 
underneath, as required by statute. 
Very truly yours, 
(Signed) Richard J. Daley, 

Mayor. 
[Signatures appended as stated] 



City of Chicago 
Office of the City Comptroller 

February 1, 1961. 
To the Honorable, The City Council of the City of 
Chicago : 

Gentlemen — Please take notice that I have se- 
lected and do hereby designate T. F. Murphy as 
my proxy for me and in my name, place and stead, 



to affix my signature as City Comptroller to the 
following 

$25,000,000 of Chicago-O'Hare 
International Airport 
Revenue Bonds 
Series A of 1961 
dated January 1, 1961 
due January 1, 1999 
in denominations of $1000 
each, numbered as follows: 
M-120001 - M-145000. 
Appended hereto is a written signature as my 
name is to appear on the said bonds, executed by 
the said T. F. Murphy, with the proxy's own sig- 
nature underneath, as required by statute. 
Yours very truly, 

(Signed) Alvin L. Weber, 
City Comptroller. 
[Signatures appended as stated] 



Authority Granted for Issuance of $30,000,000.00 

Waterworks System Certificates 

of Indebtedness. 

The Committee on Finance submitted a report rec- 
ommending that the City Council pass a proposed ordi- 
nance transmitted therewith, to authorize the issuance 
of $30,000,000.00 Waterworks System Certificates of 
Indebtedness and to provide for payment of the prin- 
cipal thereof and interest thereon. 

On motion of Alderman Keane the committee's rec- 
ommendation was concurred in and said proposed ordi- 
nance was passed, by yeas and nays as follows: 

Yeas — Aldermen Harvey, Metcalfe, Holman, Des- 
pres, Miller, Bohling, Condon, Lupo, Pacini, Nowakow- 
ski, Zelezinski, Egan, J. P. Burke, Sheridan, Slight, 
Murray, Campbell, Bonk, Janousek, Tourek, Lewis, 
Marzullo, Sain, Girolami, T. F. Burke, Ronan, Keane, 
Sulski, Sande, Laskowski, Massey, Corcoran, Cullerton, 
Shapiro, Simon, Bell, Bauler, Rosenberg, Wigoda — 39. 

Nays — None. 

Alderman Janousek (seconded by Alderman Camp- 
bell) moved to Reconsider the foregoing vote. The 
motion was Lost (Alderman Bohling voting "Aye"). 

The following is said ordinance as passed: 

An Ordinance 
Authorizing the issuance of $30,000,000 Water- 
works System Certificates of Indebtedness of the 
City of Chicago, and providing for the payment 
thereof. 

Whereas, The City of Chicago has a population 
of five hundred thousand or more and owns and 
operates its waterworks system and under Section 
22-26 to Section 22-29, inclusive, of the Revised 
Cities and Villages Act, approved August 15, 1941, 
as amended, 111. Rev. Stat. 1959, the City of Chicago 
has authority to pay for improving and extending 
such waterworks system by issuance and sale of 
certificates of indebtedness of said City payable 
solely from the revenue derived from the operation 
thereof to the amount of $150,000,000 during the 
eight-year period of 1958 to 1965, both years inclu- 
sive, and such certificates of indebtedness in the 
amount of $55,000,000 have been authorized and 



February 1, 1961 



REPORTS OF COMMITTEES 



Authority Given for Amendment of Lease of North- 
west Airlines, Inc. and Braniff Airways, Inc. 
for Space at Chicago-O'Hare 
International Airport. 

The Committee on Finance submitted a report rec- 
ommending that the City Council pass a proposed 
ordinance transmitted therewith, to authorize execu- 
tion of an amendment of the lease of Northwest Air- 
lines, Inc. and Braniff Airways, Inc., to increase the 
space to be used by said companies at Chicago-O'Hare 
International Airport. 

On motion of Alderman Keane the committee's 
recommendation was concurred in and said proposed 
ordinance was passed, by yeas and nays as follows : 

Yeas — Aldermen D'Arco, Harvey, Metcalfe, Holman, 
D e s p r e s , Miller, Bohling, Condon, Lupo, Pacini, 
Nowakowski, Zelezinski, J. P. Burke, Sheridan, 
Slight, Murray, Campbell, Bonk, Janousek, Tourek, 
Lewis, Marzullo, Sain, Girolami, T. F. Burke, Ronan, 
Keane, Sulski, Sande, Laskowski, Massey, Corcoran, 
Cullerton, Shapiro, Simon, Bell, Bauler, Rosenberg, 
Wigoda— 33. 

Nays — None. 

The following is said ordinance as passed: 

Be It Ordained by the City Council of the City of 

Chicago : 

Section 1. That the Commissioner of Aviation 
and the City Comptroller, subject to approval as 
to form and legality by the Corporation Counsel, 
are authorized to execute an amendment of lease 
with Northwest Airlines and Braniff Airways, at 
Chicago-O'Hare International Airport, said amend- 
ment to be in substantially the following form: 
Amendment to Lease between the 
City of Chicago and 

Northwest Airlines and Braniff Airways. 

This Agreement, made and entered into this 

day of , A.D., 19 , by and between 

the City of Chicago, a municipal corporation of 
the State of Illinois, hereinafter called "Lessor", 
and Northwest Airlines, Inc. and Braniff Air- 
ways, Inc., corporations organized and existing 
under and by virtue of the laws of the States of 
Minnesota and Oklahoma respectively, hereinafter 
called "Lessee"; 

Witnesseth : 

Whereas, the Lessor and Lessee have heretofore 
entered into an agreement pursuant to ordinance 
passed December 29, 1958 (C.J.P. pp. 9420-9438 in- 
clusive) in and by which the Lessor, among other 
provisions, granted to the Lessee certain premises 
to be occupied and used for the purposes therein 
stated, located at Chicago-O'Hare International 
Airport, in the City of Chicago, Counties of Cook 
and DuPage, and State of Illinois; and 

Whereas, the City Council of the City of Chicago 

did on the day of , 19 , 

duly pass an ordinance appearing on page of 

the Journal of Proceedings of the City Council of 
said date, authorizing amendment to said agree- 
ment as hereinafter authorized; 

Now, Therefore, Lessor, in consideration of the 
covenants and conditions set forth in said agree- 
ment authorized on December 29, 1958, to be per- 
formed by Lessee, does hereby amend said agree- 
ment and grant to Lessee, and Lessee hereby ac- 
cepts said premises therein set forth and upon the 



terms, conditions and provisions set forth and 
stated in said agreement, as authorized on Decem- 
ber 29, 1958 (to which said agreement bearing said 
date reference is hereby made and which the par- 
ties hereto agree will be incorporated, and shall be 
considered to be incorporated herein, by this refer- 
ence thereto) except insofar and only insofar as 
said terms, conditions, and provisions are modified, 
changed or amended by the further provisions of 
this agreement. 

Lessor and Lessee hereby further agree that the 
sole modifications of, changes in, and amendments 
to the terms, conditions, and provisions of said 
agreement, as authorized on December 29, 1958, 
which are hereby made therein and which shall be 
applicable to all renewals and extensions of said 
agreement made and provided for therein, are the 
following, viz.: 

1. The Habendum clause appearing in said agree- 
ment reading as follows: 

"City does hereby lease to Airline, and Airline 
does hereby lease from City, the premises (here- 
inafter, together with any buildings and im- 
provements now or hereafter located thereon, 
referred to as the 'demised premises') at the 
Airport designated as Northwest Airlines and 
Braniff Airways on Exhibit A-l attached hereto 
and made a part hereof, together with the facil- 
ities, rights and privileges hereinafter described." 

shall be and is hereby modified, changed and 

amended to read as follows: 

"City does hereby lease to Airline, and Airline 
does hereby lease from City, the premises (here- 
inafter, together with any buildings and im- 
provements now or hereafter located thereon, 
referred to as the 'demised premises') at the 
Airport designated as Northwest Airlines and 
Braniff Airways on Exhibit A-l, Revision B, 
dated May 12, 1960 attached hereto and made a 
part hereof, together with the facilities, rights 
and privileges hereinafter described." 

2. The Reddendum Clause appearing in said 
agreement reading as follows: 

"Airline shall pay on or before the first day of 
each calendar month commencing the earlier of 
(1) January 1, 1962, or (2) the first day of the 
calendar month next succeeding the date when 
the facilities to be constructed by City, as pro- 
vided in Section 5.01 hereof, have been substan- 
tially completed and are available for normal 
use, and during the balance of the term hereof 
a monthly rental (hereinafter called 'ground 
rental') of One Thousand Five Hundred and 
Eighty Dollars ($1,580.00). 

Airline shall also pay on or before the first day 
of each calendar month commencing January 1, 
1962 (regardless of the date on which the hangar 
to be constructed by City upon the demised 
premises shall be completed), and thereafter so 
long during the term hereof as any Bonds issued 
pursuant to Section 2.02 or 2.15 of the Revenue 
Bond Ordinance are outstanding, a monthly 
rental (hereinafter called 'additional rental') of 
Twelve Thousand Seven Hundred and Ninety- 
Five Dollars ($1 2.795.00 V After the payment 
and retirement of all Bonds issued pursuant to 
Section 2.02 or 2.15 of the Revenue Bond Ordi- 
nance, the additional rental shall cease, and Air- 
line shall be entitled to the continued use of the 
demised premises during the term of this Lease 
upon the payment of the ground rental provided 
for hereunder. 



JOURNAL— CITY COUNCIL— CHICAGO 



February 1, 1961 



The ground rental and additional rental are 
herein collectively referred to as 'rental' and 
shall be payable at the office of the City Comp- 
troller. Any rental payable by Airline hereun- 
der which is not paid when due shall bear inter- 
est at the rate of seven per cent (7%) per an- 
num from the due date thereof until paid. 
If any rental hereunder terminates prior to the 
last day of any month, such rental for such 
month shall be determined on a pro rata basis 
according to the number of days of such month 
involved. 

City and Airline agree that so long as any Ap- 
proved Revenue Bonds are outstanding the rent- 
als provided for hereunder shall not be reduced." 
shall be and is hereby modified, changed and 
amended to read as follows: 

Airline shall pay on or before the first day of 
each calendar month commencing the earlier of 
(1) January 1, 1962, or (2) the first day of the 
calendar month next succeeding the date when 
the facilities to be constructed by City, as pro- 
vided in Section 5.01 hereof, have been substan- 
tially completed and are available for normal 
use, and during the balance of the term hereof 
a monthly rental (hereinafter called "ground 
rental") of One Thousand Nine Hundred Thirty 
and 00/100 Dollars ($1,930.00). 
Airline shall also pay on or before the first day 
of each calendar month commencing January 1, 
1962 ( regardless of the date on which the hangar 
to be constructed by City upon the demised 
premises shall be completed), and thereafter so 
long during the term hereof as any Bonds is- 
sued pursuant to Section 2.02 or 2.15 of the 
Revenue Bond Ordinance are outstanding, a 
monthly rental (hereinafter called "additional 
rental) of Twelve Thousand Seven Hundred and 
Ninety-Five Dollars ($12,795.00). After the pay- 
ment and retirement of all Bonds issued pur- 
suant to Section 2.02 or 2.15 of the Revenue 
Bond Ordinance, the additional rental shall 
cease, and Airline shall be entitled to the con- 
tinued use of the demised premises during the 
term of this Lease upon the payment of the 
ground rental provided for hereunder. 
The ground rental and additional rental are here- 
in collectively referred to as "rental" and shall 
be payable at the office of the City Comptroller. 
Any rental payable by Airline hereunder which 
is not paid when due shall bear interest at the 
rate of seven per cent (7%) per annum from 
the due date thereof until paid. 
If any rental hereunder terminates prior to the 
last day of any month, such rental for such 
month shall be determined on a pro rata basis 
according to the number of days of such month 
involved. 

City and Airline agree that so long as any Ap- 
proved Revenue Bonds are outstanding the rent- 
als provided for hereunder shall not be reduced. 
Lessor and Lessee hereby agree that, except 
solely as hereinabove modified, changed and amend- 
ed, the terms, conditions, and provisions of said 
agreement authorized December 29, 1958, shall ap- 
ply to, and shall govern, this amendment of said 
agreement, and any and all further renewal and 
extension thereof for any subsequent periods which 
may be effected or made under and in accordance 
with the provisions contained in said agreement 
authorized December 29, 1958. 

In Witness Whereof, the parties hereto have 



caused this instrument to be signed under their 
respective seals on the day and year first above 
written. 

[Signature forms omitted] 
Section 2. This ordinance shall be in force and 
effect from and after its passage. 



City Comptroller Authorized to Accept Compromise 

Offers in Settlement of Various Warrants 

for Collection. 

The Committee on Finance submitted a report 
recommending that the City Council pass the following 
proposed order transmitted therewith: 

Ordered, That the City Comptroller is author- 
ized, in accordance with his communication dated 
January 16, 1961 and the attached recommenda- 
tions of the Corporation Counsel, to accept com- 
promise offers of settlement of warrants for collec- 
tion as follows: 

Warrant Compromise 

Year Number Amount Offer 

1960 D-99658 $ 385.94 $300.00 

1960 D-99681 135.97 100.00 

1957 F-659 1,319.00 950.00 

1959 F-975 266.87 208.60 
1957 F-2614B 114.92 53.10 

1960 F-2711 64.38 45.00. 
On motion of Alderman Keane the committee's 

recommendation was concurred in and said proposed 
order was passed, by yeas and nays as follows : 

Yeas — Aldermen D'Arco, Harvey, Metcalfe, Holman, 
D e s p r e s , Miller, Bohling, Condon, Lupo, Pacini, 
Nowakowski, Zelezinski, J. P. Burke, Sheridan, 
Slight, Murray, Campbell, Bonk, Janousek, Tourek, 
Lewis, Marzullo, Sain, Girolami, T. F. Burke, Ronan, 
Keane, Sulski, Sande, Laskowski, Massey, Corcoran, 
Cullerton, Shapiro, Simon, Bell, Bauler, Rosenberg, 
Wigoda— 39. 

Nays — None. 



City Comptroller Authorized to Accept $25,000.00 

from Allegheny Mutual Casualty Co. 

in Full Settlement of Certain 

Judgments. 

The Committee on Finance submitted a report 
recommending that the City Council pass the following 
proposed order transmitted therewith: 

Ordered, That the City Comptroller, in accord- 
ance with the recommendation of the Corporation 
Counsel dated January 26, 1961, is authorized and 
directed to accept from the Allegheny Mutual Cas- 
ualty Company, a Pennsylvania corporation, the 
sum of Twenty-five Thousand ($25,000.00) Dollars, 
Twenty-four Thousand ($24,000.00) Dollars of 
which will be paid in cash and One Thousand 
($1,000.00) Dollars of which Allegheny Mutual 
Casualty Company has already deposited with the 
Clerk of the Municipal Court of Chicago, which 
sum constitutes payment in full of the judgment in 
the amount of Twenty Thousand Five Hundred and 
Ten ($20,510.00) Dollars entered by Judge Daniel 



February 1, 1961 



UNFINISHED BUSINESS 



sioner of Streets and Sanitation, the Commissioner 
of Water and Sewers and the President of the 
Board of Health be and are hereby directed to issue 
all necessary permits, free of charge, notwith- 
standing other ordinances of the City to the con- 
trary, to Concordia Evangelical Lutheran Church 
for construction of an addition to the existing 
church building on the premises known as Nos. 
3853-3855-3859 N. Seeley Avenue. 

Said building shall be used exclusively for reli- 
gious and educational purposes and shall not be 
leased or otherwise used with a view to profit, and 
the work thereon shall be done in accordance with 
plans submitted. 

Section 2. This ordinance shall take effect and 
be in force from and after its passage. 

On motion of Alderman Despres said proposed ordi- 
nance was passed, by yeas and nays as follows: 

Yeas — Aldermen D'Arco, Harvey, Metcalfe, Holman, 
Despres, Miller, Bohling, Condon, Lupo, Pacini, 
Nowakowski, Zelezinski, J. P. Burke, Sheridan, 
Slight, Murray, Campbell, Bonk, Janousek, Tourek, 
Lewis, Marzullo, Sain, Girolami, T. F. Burke, Ronan, 
Keane, Sulski, Sande, Laskowski, Massey, Corcoran, 
Cullerton, Shapiro, Simon, Bell, Bauler, Rosenberg, 
Wigoda— 39. 

Nays — None. 



Presented by 
ALDERMAN WIGODA (49th Ward): 

License-Fee Exemption Granted. 

A proposed ordinance reading as follows: 

Be It Ordained by the City Council of the City of 

Chicago: 

Section 1. Pursuant to Section 136-5 of the 
Municipal Code of Chicago and in accordance with 
favorable investigation by the Board of Health, the 
George J. Goldman Memorial Home, No. 1152 W. 
Farwell Avenue, is hereby exempted from payment 
of the annual license fee provided in Section 136-4, 
for the current license period. 

Section 2. This ordinance shall be in force and 
effect from and after its passage. 

On motion of Alderman Wigoda said proposed ordi- 
nance was passed, by yeas and nays as follows: 

Yeas — Aldermen DArco, Harvey, Metcalfe, Holman, 
Despres, Miller, Bohling, Condon, Lupo, Pacini, 
Nowakowski, Zelezinski, J. P. Burke, Sheridan, 
Slight, Murray, Campbell, Bonk, Janousek, Tourek, 
Lewis, Marzullo, Sain, Girolami, T. F. Burke, Ronan, 
Keane, Sulski, Sande, Laskowski, Massey, Corcoran, 
Cullerton, Shapiro, Simon, Bell, Bauler, Rosenberg, 
Wigoda— 39. 

Nays — None. 



UNFINISHED BUSINESS. 



Authority Granted for Amendment of Ozark Air Lines 

Lease of Hangar Space at Chicago-O'Hare 

International Airport. 

On motion of Alderman Keane the City Council took 
up for consideration the report of the Committee on 
Finance deferred and published November 10, 1960, 
pages 3364-3365, recommending that the City Council 
pass a proposed ordinance transmitted with the com- 
mittee's report to authorize an amendment of the 
Ozark Air Lines lease of hangar space at Chicago- 
O'Hare International Airport. 

On motion of Alderman Keane the committee's 
recommendation was concurred in and said proposed 
ordinance was passed, by yeas and nays as follows : 

Yeas — Aldermen D'Arco, Harvey, Metcalfe, Holman, 
Despres, Miller, Bohling, Condon, Lupo, Pacini, 
Nowakowski, Zelezinski, J. P. Burke, Sheridan, 
Slight, Murray, Campbell, Bonk, Janousek, Tourek, 
Lewis, Marzullo, Sain, Girolami, T. F. Burke, Ronan, 
Keane, Sulski, Sande, Laskowski, Massey, Corcoran, 
Cullerton, Shapiro, Simon, Bell, Bauler, Rosenberg, 
Wigoda— 39. 

Nays — None. 

The following is said ordinance as passed: 

Be It Ordained by the City Council of the City of 
Chicago : 

Section 1. That the Commissioner of Aviation 
and the City Comptroller are authorized to execute 



on behalf of the City of Chicago an agreement 
with Ozark Air Lines, said agreement to be in 
substantially the following form: 
Amendment to Lease Between Ozark Air Lines 
and the City of Chicago. 
This Agreement, made and entered into this 

day of A.D.. 

1960, by and between the City of Chicago, a mu- 
nicipal corporation of the State of Illinois, herein- 
after called "Lessor," and Ozark Air Lines, a cor- 
poration organized and existing by virtue of the 
laws of the State of Missouri, hereinafter called 



Witnesseth : 

Whereas, the Lessor and Lessee have heretofore 
entered into an agreement pursuant to ordinance 
passed December 29, 1958 (C.J.P. pp. 9420-9438 in- 
clusive) in and by which the Lessor, among other 
provisions, granted to the Lessee certain premises 
to be occupied and used for the purposes therein 
stated, located at Chicago-O'Hare International Air- 
port, in the City of Chicago, Counties of Cook and 
DuPage, and State of Illinois: 

Whereas, the City Council of the City of Chicago 

did on the day of 

1960, duly pass nn ordinance appearing on page 

of the Journal of Proceedings of the City 

Council of said date, authorizing amendment to said 
agreement as hereinafter authorized: 

Now, Therefore, Lessor, in consideration of the 
covenants and conditions set forth in said agree- 
ment authorized on December 29. 1958. to be per- 
formed by Lessee, does hereby amend said agree- 



JOURNAL— CITY COUNCIL— CHICAGO 



February 1, 1961 



ment and grant to Lessee, and Lessee hereby ac- 
cepts said premises therein set forth and upon the 
terms, conditions and provisions set forth and 
stated in said agreement, as authorized on December 
29, 1958, (to which said agreement bearing said 
date reference is hereby made and which the parties 
hereto agree will be incorporated, and shall be con- 
sidered to be incorporated herein, by this reference 
thereto) except in so far and only in so far as said 
terms, conditions, and provisions are modified, 
changed or amended by the further provisions of 
this agreement. 

Lessor and Lessee hereby further agree that the 
sole modifications of, changes in, and amendments 
to the terms, conditions, and provisions of said 
agreement, as authorized on December 29, 1958, 
which are hereby made therein and which shall be 
applicable to all renewals and extensions of said 
agreement made and provided for therein, are the 
following, viz.: 

1. The Habendum clause appearing in said agree- 
ment reading as follows : 

"City does hereby lease to Airline, and Airline 
does hereby lease from City, the premises (here- 
inafter, together with any buildings and improve- 
ments now or hereafter located thereon, referred 
to as the 'demised premises') at the Airport des- 
ignated as Ozark Air Lines on Exhibit A-l at- 
tached hereto and made a part hereof, together 
with the facilities, rights and privileges herein- 
after described." 
shall be and is hereby modified, changed and 
amended to read as follows : 

"City does hereby lease to Airline, and Airline 
does hereby lease from City, the premises (here- 
inafter, together with any buildings and improve- 
ments now or hereafter located thereon, referred 
to as the 'demised premises') at the Airport des- 
ignated as Ozark Air Lines on Exhibit A-l, Re- 
vision B, dated May 12, 1960 attached hereto and 
made a part hereof, together with the facilities, 
rights and privileges hereinafter described." 
Lessor and Lessee hereby agree that, except solely 
as hereinabove modified, changed and amended, the 
terms, conditions, and provisions of said agreement 
authorized December 29, 1958, shall apply to, and 
shall govern, this amendment of said agreement, 
and any and all further renewal and extension 
thereof for any subsequent periods which may be 
effected or made under and in accordance with the 
provisions contained in said agreement authorized 
December 29, 1958. 

[Signature forms and exhibit omitted] 
Section 2. This ordinance shall be in force and 
effect from and after its passage. 



Section 3.2 of Text of Chicago Zoning Ordinance 

Amended (to Change Definition of 

"Planned Development"). 

On motion of Alderman Pacini the City Council took 
up for consideration the report of the Committee on 
Buildings and Zoning deferred and published January 
17, 1961, pages 4291-4292, recommending that the City 
Council pass a proposed ordinance transmitted with 
the committee's report, which reads as follows: 

Be It Ordained by the City Council of the City of 
Chicago : 
Section 1. That the Chicago Zoning Ordinance 



as amended be further amended as follows: 

Article 3 is amended by striking the entire para- 
graph defining "Planned Development" appearing 
in the fourth paragraph on page 22A, and sub- 
stituting in lieu thereof the following: 

"A 'Planned Development' is a tract of land 
which is developed as a unit under single owner- 
ship or control, or which is under single desig- 
nated control by a common ownership at the 
time it is certified as a 'Planned Development' 
and which includes two or more principal build- 
ings, except in the case of hospital planned de- 
velopments which may have only one principal 
building. A 'Planned Developments shall be at 
least four acres in area, except for planned de- 
velopments operated by a municipal corporation, 
or a hospital as defined by law, which shall be 
at least two acres in area, and manufacturing 
planned developments, which shall be at least 
10 acres in area." 

Section 2. This ordinance shall be in force and 
effect from and after its passage and due pub- 
lication. 

On motion of Alderman Pacini the committee's rec- 
ommendation was concurred in and said proposed 
ordinance was passed, by yeas and nays as follows: 

Yeas — Aldermen D'Arco, Harvey, Metcalfe, Holman, 
D e s p r e s , Miller, Bohling, Condon, Lupo, Pacini, 
Nowakowski, Zelezinski, J. P. Burke, Sheridan, 
Slight, Murray, Campbell, Bonk, Janousek, Tourek, 
Lewis, Marzullo, Sain, Girolami, T. F. Burke, Ronan, 
Keane, Sulski, Sande, Laskowski, Massey, Corcoran, 
Cullerton, Shapiro, Simon, Bell, Bauler, Rosenberg, 
Wigoda— 39. 

Nays — None. 

Alderman Pacini moved to Reconsider the foregoing 
vote. The motion was Lost. 



Text of Chicago Zoning Ordinance Amended 

(Concerning Rest Homes and 

Nursing Homes). 

On motion of Alderman Pacini the City Council took 
up for consideration the report of the Committee on 
Buildings and Zoning deferred and published January 
17, 1961, page 4292, recommending that the City 
Council pass a proposed ordinance transmitted with 
the committee's report, which reads as follows: 

Be It Ordained by the City Council of the City of 
Chicago : 

Section 1. That the Chicago Zoning Ordinance 
as amended is further amended as follows: 

(1) Article 7, Paragraph 7.3-4 entitled "Per- 
mitted Uses — R4 General Residence District" is 
amended 

(a) By striking from subparagraph (6) ap- 
pearing on page 12 A thereof the words "and 
Convalescent Homes", and by striking out the 
comma appearing after the word "Sanitar- 
iums" and inserting in place thereof a period. 

(b) By striking subparagraph (11) appear- 
ing en page 12 A thereof reading "Rest Homes 
and Nursing Homes." 



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